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Europe Updates — Jun 22 – Jun 28, 2026

Albania1 article

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.

Armenia1 article

Policy Development·Jun 27

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.

Austria1 article

Policy Development·Jun 27

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.

Bulgaria1 article

Court Decision·Jun 27

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.

Gibraltar1 article

Policy Development·Jun 23

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.

Ireland2 articles

Policy Development·Jun 27

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.

Tax Authority Practice·Jun 27

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.

Italy1 article

Policy Development·Jun 22

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.

Monaco1 article

Policy Development·Jun 23

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.

Albania1

Policy Development·Jun 27

VAT Developments in Albania - 6 Months Into 2026

Armenia1

Policy Development·Jun 27

Armenia Proposes VAT Administration Simplifications

Austria1

Policy Development·Jun 27

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

Bulgaria1

Court Decision·Jun 27

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.

Gibraltar1

Policy Development·Jun 23