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Croatia·

Croatia Releases 2026 Half-Year Results Under Expanded Fiscalization Regime

Croatia’s Tax Administration (Porezna uprava) has published the first half-year results since the country’s expanded fiscalization rules took effect on January 1, 2026. Businesses issued 1,195,725,547 fiscal receipts between January and June 2026, with a combined value of €25.14 billion.

Austria·

VAT in Austria: Six Month Into 2026 - New VAT Rates From July 1

The first half of 2026 brought several significant VAT developments in Austria. The most notable is the introduction of a new 4.9% VAT rate for specified essential foodstuffs, effective 1 July 2026. Other changes include a 0% VAT rate for feminine hygiene products and contraceptives, new VAT rules for high-value residential lettings, amendments to cash register requirements and revised Intrastat thresholds.

Armenia·

Armenia Proposes VAT Administration Simplifications

The Armenian State Revenue Committee (SRC) has presented a package of legislative amendments intended to simplify tax administration and address practical issues identified during discussions with taxpayers. The proposed measures include several changes affecting VAT administration, VAT registration and the VAT obligations of non-resident suppliers.

Albania·

VAT Developments in Albania - 6 Months Into 2026

In the first half of 2026, Albania introduced and advanced several VAT and tax administration measures focused on fiscalization, electronic filing, cash payment limits, POS terminal use, agriculture and digital services.

Ireland·

Irish Fiscal Advisory Council Examines Multinationals’ Contribution to Tax Revenues in Ireland

The Irish Fiscal Advisory Council has published a new analysis examining Ireland’s growing reliance on foreign-owned multinationals for tax revenues. While broader than VAT alone, the report highlights that multinational firms in the manufacturing, technology and financial services sectors contributed more than €13 billion in VAT and payroll taxes in 2024, accounting for almost one-fifth of all VAT and payroll tax receipts.

Ireland·

Ireland: Farm Equipment Installed in Existing Buildings Does Not Qualify for Flat-Rate VAT Refund

The Irish Tax Appeals Commission has held that a flat-rate farmer is not entitled to a VAT refund for equipment installed in an existing farm building where the works do not involve the construction, extension, alteration or reconstruction of the building itself.

Bulgaria·

Bulgaria: Court Upholds Denial of Input VAT Deduction Due to Insufficient Evidence of Supplies

The Bulgarian Supreme Administrative Court has upheld a tax assessment denying a taxpayer’s right to deduct input VAT in relation to invoices issued for advertising and construction services.

Monaco·

Monaco’s VAT in 2026: Preparing for France’s E-Invoicing Reform

Monaco’s VAT system has seen few substantive changes of its own during the first half of 2026. Unlike a number of other European microstates, the Principality does not operate an independent VAT policy framework and therefore has no separate rate changes, exemption reforms, or VAT incentives to report. Instead, the main development affecting businesses this year is France’s e-invoicing reform, which begins taking effect from September 2026 and extends to many Monegasque businesses because of Monaco’s longstanding VAT integration with France.

Gibraltar·

Gibraltar’s VAT-Free Era Is Ending — But VAT Isn’t Arriving

Gibraltar’s indirect tax system is undergoing its biggest transformation in decades. The change is not the result of a domestic tax reform programme, but of the post-Brexit treaty negotiated between the UK, Gibraltar, Spain and the European Union.

Italy·

Italy's VAT Act Rewrite Enters Its Final Preparation Year

Six months into 2026, Italy is preparing for the most significant restructuring of its VAT framework in more than fifty years. A new Consolidated VAT Code will replace the patchwork of legislation that has governed Italian VAT since the 1970s, but most of its substantive provisions do not take effect until January 2027. The first half of 2026 has therefore become a transition year: businesses are adapting to the new framework while tax authorities continue tightening fiscal controls, expanding digital reporting, and aligning domestic rules with broader EU reforms.

Belgium·

Belgium Mandates New Certified Cash Register System (GKS 2.0) from 1 July 2026

Belgium's Federal Public Service Finance has published a Royal Decree on 3 June 2026 making GKS 2.0 — the new version of the registered cash register system — mandatory for hospitality businesses.

France·

France Finalizes Reduced 5.5% VAT Rate for Small Solar Panel Installation

France's tax administration (DGFiP) published updated guidance on June 10, 2026, finalizing rules on the reduced 5.5% VAT rate for the supply and installation of residential solar electricity equipment, following a public consultation launched in October 2025. The guidance (BOI-TVA-LIQ-30-20-97) implements Article 42 of the 2025 Finance Law (Law No. 2025-127 of February 14, 2025).

Finland·

Finnish Tax Administration Relocates Helsinki Office to Pasila Service Point

Finland's Tax Administration moves its Helsinki customer service from Hämeentie to a shared government service point in Pasila from June 1, 2026.

Estonia·

Tallinn Court Upholds Retroactive VAT Registration in Cross-Border Vehicle Leasing Case

The Tallinn Administrative Court ruled on February 19, 2025 (case no. 3-24-1534, entered into force on May 23, 2026) that a tax authority's decision to retroactively register a foreign company as an Estonian VAT payer was lawful, rejecting the company's challenge.

Denmark·

Danish Tax Council Rules Job-Focused Danish Language Courses for Refugees Are VAT-Exempt

The Danish Tax Council has ruled that specialized Danish-language courses aimed at helping refugees from a country identified only as "Y1" find and keep jobs in agriculture and cleaning are exempt from VAT as vocational education, in a binding decision published June 8, 2026 (SKM2026.274.SR).

Denmark·

Danish Tax Council: No VAT Liability for Third-Country Direct Sales

Denmark's Tax Council ruled that sellers using DDU/DAP terms with consumer as importer avoid Danish VAT registration and sales tax obligations.

Czech Republic·

Czech Government Revives Electronic Sales Records and Cuts VAT on Soft Drinks in Sweeping Tax Package

The Czech Ministry of Finance proposes VAT amendments improving bad debt corrections for minor receivables, raising per-receivable limits to CZK 20,000 and cutting overdue periods to 3 months.

Germany·

Germany Mandates Updated Customs Authorizations Questionnaire from June 1

German customs authority has fully revised its questionnaire for customs authorizations, making the new version mandatory for all relevant application and monitoring procedures since June 1, 2026.

Italy·

Italian Tax Agency Rules Corporate Spin-Off Not Tax Abuse

The Agenzia delle Entrate determined that a complex corporate restructuring involving share transfers and asset splits does not constitute abusive tax avoidance under Article 10-bis.

Italy·

Italy’s Supreme Court: Mobile-Phone Cashback Promotions Do Not Permit VAT Adjustment Under Reverse-Charge Regime

Italy's Supreme Court ruled that expenses advanced during partial company demergers remain outside VAT scope when reimbursed, even if original documentation was addressed to the demerged entity.

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