Bulgaria’s VAT reform, effective 1 January 2026, introduces a small‑enterprise regime allowing companies with turnover up to €51,130 domestically and €100,000 EU‑wide to operate VAT‑free across the EU, removes the reverse‑charge for goods assembled or installed in Bulgaria, and expands registration thresholds to include subsidies, packaging, transport and other charges, all expressed in euros following euro adoption.

On January 14, the Lithuanian State Tax Inspectorate released a summary explanation outlining VAT filing requirements for the small business regime. The guidance specifies that returns must be filed electronically via the online portal and due by the 25th of the month following the tax period in which VAT obligations arose or services were supplied in another EU member state. It also confirms that small business regime taxpayers in other EU member states must comply with the same electronic filing requirement.

Poland’s Ministry of Finance has extended the phased launch of the KSeF e‑invoicing system, with large taxpayers required to go live on 1 Feb 2026 and other businesses on 1 Apr 2026. No monetary penalties will apply for KSeF breaches during 2026, but administrative fines may be imposed from 1 Jan 2027. Additional requirements include bank‑transfer ID references from 1 Aug 2026 and mandatory acceptance of KSeF invoices by Polish VAT‑registered customers.

Denmark has increased its Intrastat Dispatches threshold to DKK 11.8 million effective 1 January 2026, while the Arrivals threshold remains unchanged at DKK 42 million. The change requires businesses to report additional data in the electronic Intrastat form, including goods description, commodity code, delivery terms, transport mode, destination and origin countries, weight/quantity, and invoice value. Since January 2022, Intrastat also mandates the country of origin for dispatches and the VAT ID of the recipient.

Chile's tax authority issued Letter No. 24 on Jan. 7 clarifying that VAT payers receiving taxable services from nonresident providers must issue purchase invoices and pay VAT. The letter also requires retroactive invoicing if invoices are not issued in the same tax period as the remuneration. These guidance rules affect Chilean businesses dealing with foreign service providers.

The Advocate General’s opinion in the Stellantis Portugal case (C‑603/24) clarifies that transfer pricing adjustments between group companies are to be treated as adjustments to the original prices of earlier sales, not as separate repair services. Consequently, corrective invoices must be issued and the VAT taxable base of those earlier supplies must be adjusted. The final CJEU judgment is expected later in 2026.

The European Commission’s ViDA initiative introduces a common EU digital reporting standard, mandatory e‑invoicing for intra‑EU B2B transactions, and expands the OSS/IOSS to cover more B2C supplies. It also imposes platform‑operator deemed‑supplier rules for accommodation and transport services. The phased rollout runs from 2025 to 2035, requiring businesses to modernise their tax technology and processes.

The Advocate‑General has clarified that transfer‑pricing (TP) adjustments made for direct tax purposes do not attract VAT, but TP adjustments that are contractually agreed within intra‑group supplies of goods are within the scope of VAT. In the Stellantis Portugal case (C‑603/24), the Portuguese tax authorities imposed VAT assessments on Stellantis Portugal for TP adjustments, and the Advocate‑General advised the European Court that such adjustments should be treated as price adjustments for vehicles. Businesses are urged to review their TP policies and implement VAT considerations in their ERP systems.

The ViDA package represents a sweeping overhaul of the EU VAT system, aiming to curb fraud, simplify SME compliance, and create a fairer digital marketplace. It introduces mandatory e‑invoicing and near real‑time digital reporting for intra‑EU transactions, expands the Single VAT Registration and Import One‑Stop Shop, and projects up to €18 billion in annual revenue gains and €5.1 billion in compliance cost reductions by 2030.