VAT and Ecommerce news from around the world to help you stay up-to-date with the market.
Here are all the key VAT rate changes coming in 2026:
Starting 1st of February 2026, everyone registered for VAT in Poland will need to include a KSeF invoice number (NrKSef) in their sales and purchase records. This change will align JPK_VAT reporting with the National e-Invoicing System (KSeF) and ensure the full traceability of invoices across e-invoices and VAT reports. The new JPK_VAT schema (v1-0E) includes a dedicated field for NrKSeF.
Don’t worry if you’re not prepared for the change. The 1st of February is the beginning of a transition period, and the old format will remain valid until the end of 2026.
What does this mean for you if you’re registered in Poland but not established there? Here’s an example of how a transaction will go after February 1st:
Eventually, Germany will replace all of its traditional tax numbers with a new identifier: the W-IdNr. This new number is currently being rolled out in phases and will be issued to all taxpayers filing at least an annual tax return in Germany. As it’s still in its introductory phase, the number isn’t mandatory on tax returns.
Rollout of the new number is automatic; you don’t need to apply for it. If you had a USt-IdNr, you should already have your W-IdNr, as it corresponds to your USt-IdNr. For everyone else, allocation began on December 1st and will show on your VAT certificate.
Until the German Tax Authority notifies otherwise, VAT returns will continue to use existing VAT numbers. Electronic forms are gradually being updated to include the W-IdNr. Verification of the W-IdNr in ELSTER is currently not possible.
New rules introduced through amendments to the Czech VAT Act will affect taxpayers with unpaid invoices. Although planned as part of the 2025 VAT reforms and adopted earlier this year, the Ministry of Finance has only recently clarified its practical application.
Businesses must adjust their VAT deductions on invoices that are unpaid for more than six months after the due date. This rule applies to all taxable supplies received on or after the 1st of January 2025.
The six-month period starts at the end of the month in which the invoice became due. If you partially pay an invoice, you have to proportionally reduce your deduction. The due date is determined by contract terms or the law. Once you have paid the whole invoice, you can reclaim the rest of the VAT. Corrections have to be made within two years of the first eligible adjustment period.
If you pay Czech VAT quarterly, you’re exempt from this rule if the payment occurs by the end of the relevant quarter. Reverse charge transactions and intra-community acquisitions are also exempt.
Failure to adjust deductions correctly may result in late payment interest, penalties and increase your chance of being audited.
As a part of the 2026 French Budget negotiations, the Digital Services Tax (DST) will double to 6% starting 1st of January 2026. This is much lower than the 15% rate suggested earlier by the Finance Committee.
The Digital Services Tax is expected to raise €700 million a year for France, based on the total from 2024.
Bulgaria adopts the euro on the 1st of January, and has set the official exchange rate to 1EUR:1.956BGN. The Instrastat thresholds for 2026 have been updated accordingly:
For reporting statistical information:
In Lithuania, statistical thresholds remain unchanged, but the new Intrastat thresholds are:
In Finland, you no longer have to report arrivals from other EU countries. That data is now collected from dispatches reported by other EU Tax Authorities. Reporting on arrivals is now on request only, whilst reporting on dispatches and thresholds for both reports remains unchanged.
Three recent investigations have revealed the scale of VAT fraud across the EU. Just these three investigations show billions are lost across the whole union:
In France alone, €303 million in unpaid VAT was recovered in 2024 by the Directorate General of Public Finances (DGFiP). They did this through audits and the application of stronger anti-fraud measures. More intra-community VAT numbers are suspended for fraudulent taxpayers. Marketplaces have greater powers to delist non-compliant sellers.
The DGFiP was particularly looking at dropshipping, which has always created VAT collection challenges and risks of non-compliant goods. Now, dropshippers are liable for import VAT and must declare their identities to customs. They’re also subject to expanded data sharing with DGFiP. These reforms led to the abolition of Regime 42 in France.
Better cooperation between Eurofisc, EPPO and OLAF will help tackle cross-border VAT fraud. They’ll directly share access to VAT data, enabling faster information sharing. The EU is also looking to close loopholes and speed up investigations to keep the single market fair and open for honest businesses.
Speaking of closing loopholes, the EU has turned its attention to IOSS. Launched in 2021, IOSS was supposed to make VAT easier to report by simplifying it. The idea was that more people would follow the rules if it were easier to do so. Although IOSS has made an impact in this way, there’s always room for improvement.
A number of challenges with the system have been identified over the years of its being in operation:
There are two solutions to these issues currently being considered. First is verifiable digital credentials. This would enable the secure transmission of IOSS numbers and supplier information. Second, there is a pre-submission token model, which would link consignments to pre-lodged customs data via tokens.
Work is already underway to make improvements – here's the rough timeline:
From March 2028, the €150 customs duty exemption for low-value goods entering the EU will end. EU-wide transitional measures come into place in April 2026 and will affect all international ecommerce parcels.
Some countries have already announced national levies. In France and Belgium, it will be €2 per parcel. Bulgaria will charge €5 per parcel entering from outside the EU starting on 1st of January 2026. You might be liable for this fee if you are:
Transit and return parcels are exempt from this fee.
