On 8 July 2025, the Belgian tax authorities published another Royal Decree on the introduction of mandatory local e-invoicing for B2B transactions from 1 January 2026.

 

The decree contains detailed provisions, e.g. on VAT groups and rounding rules. Above all, however, it confirms that e-invoices are to be sent via the Peppol network using the so-called 4-corner model. Peppol BIS is therefore the preferred format. The background to this is that e-reporting to the tax authorities is also to be introduced from 2028, and Peppol's 5-corner model is preferred for this purpose. Other formats and transmission methods are permitted, but must be expressly agreed between the parties and also comply with the EU standard format EN16931. Furthermore, Peppol structures must still be maintained.

 

In addition, a graduated penalty system will be introduced, whereby the lack of the necessary technical requirements for issuing and receiving e-invoices can be sanctioned with fines of initially EUR 1,500, then EUR 3,000 and finally EUR 5,000. 

 

On 1 January 2026, Lithuania will introduce two new reduced VAT rates: 5% and 12%. The previous rate of 9% will be abolished. Books will be taxed at 5% in future, while other supplies previously taxed at 9% (e.g. tourism related services including accommodation) will be taxed at 12%. Some VAT exemptions will also be abolished.

 

On 7 July 2025, a legislative amendment, which will come into force on 1 October 2025, was published that is intended to incentivize voluntary and early corrections. When the tax authorities inform a taxpayer of an upcoming audit, the taxpayer will have 14 days to submit or correct its tax return for the period under review. If the tax authorities then discover errors during the audit that should have been reported, the taxpayer will be required to not only pay the tax owing plus interest, but also a penalty surcharge. This can be up to 30% and, in certain cases, up to 100% of the additional tax payable. However, if the taxpayer corrects the tax return within 14 days and transfers the outstanding VAT to the tax authorities, the penalty surcharge cannot exceed 15%. A quick and voluntary correction of the tax return can therefore limit the financial damage.

 

The Romanian government is planning to increase its VAT rates at very short notice, with effect from 1 August 2025. According to a draft law dated 14 July 2025, the standard VAT rate will increase from 19% to 21%. The two reduced VAT rates of 5% and 9% will be merged as from 1 August 2025, resulting in a single reduced VAT rate of 11%.

 

Supplies previously taxed at 5% and now subject to 11% include, among others:

The following supplies, which were previously taxed at 9%, will, in future, be taxed at 11%:

Some supplies previously taxed at 9% will now be subject to the standard rate of 21%, including:

The planned amendments to the law have been challenged in the Constitutional Court several times by the opposition. On the evening of 22 July 2025, the court rejected the last objection, so that it is now before the president for promulgation and will then officially enter into force (i.e. be published in the Official Gazette).  It is generally assumed that the increase will ultimately be postponed until 1 September 2025, as otherwise companies will have insufficient  time to convert their systems. However, this extension is by no means certain.