1    Lithuania, Netherlands, Spain and Czech Republic: ViDA implementation gains momentum

The first EU Member States have started implementing the ViDA package into their domestic legislation. Lithuania has already adopted the required amendments, while Spain, the Netherlands and the Czech Republic have published draft legislation or initiated the legislative process. The changes mainly concern the OSS/IOSS schemes, electronic interfaces, the EUR 10,000 threshold for distance sales and the gradual withdrawal of the call-off stock simplification. Most measures are expected to enter into force on 1 July 2027.

2    Spain, France and Norway: E-Invoicing requirements are expanding

Spain adopted mandatory B2B e-invoicing through Royal Decree 238/2026 of 25 March 2026 and further specified the implementation through a draft Ministerial Order published for public consultation on 17 April 2026. Under the current draft, the new requirements, including the reporting of invoice status information (e.g. acceptance and payment), are expected to apply from 1 October 2027 for businesses with an annual turnover exceeding EUR 8 million and from 1 October 2028 for all other businesses.

On 4 June 2026, the French tax authorities clarified that foreign companies, without a fixed establishment in France, are not subject to the French e-invoicing obligation but may be subject to certain e-reporting requirements. The general rollout dates of 1 September 2026 and 1 September 2027 apply.

Norway has established the legal framework for mandatory electronic invoicing and digital bookkeeping through Law-2026-06-19-39 of 19 June 2026. The new e-invoicing rules will apply from 1 January 2027, while mandatory electronic accounting systems will be introduced from 1 January 2030 for those businesses not already covered.

3    Austria and Ireland: Permanent VAT rate reductions adopted

Austria will reduce the VAT rate on selected staple foods from 10% to 4.9% with effect from 1 July 2026. Likewise, Ireland has introduced a reduced 9% VAT rate for restaurant and catering services as from 1 July 2026.

4    Switzerland: Second attempt to increase VAT rates

We previously reported on the planned increase of Swiss VAT rates (KMLZ VAT Newsletter 46 | 2025). After a previous 2025 proposal failed to gain political support, Parliament approved a VAT rate increase on 19 June 2026 with effect from 1 January 2028. The standard VAT rate is expected to increase from 8.1% to 8.5%, while the special rate for accommodation services is expected to rise from 3.8% to 4.0%. However, the required constitutional amendment must still be approved in a mandatory referendum, which is currently expected to take place in November 2026.

5    Portugal: New VAT grouping regime 

Portugal introduced a VAT grouping regime for the first time from 1 July 2026. Unlike the German VAT grouping rules (Organschaft) or the concept of a single taxable person under Article 11 of the EU VAT Directive, the Portuguese regime does not create a single taxable person. Group members remain separate taxable persons, continue filing their own VAT returns and retain their individual VAT identification numbers. The main feature of the new regime is the consolidation of VAT payable and recoverable positions at group level. Businesses with multiple Portuguese entities should assess whether the new regime is capable of generating cash-flow benefits.

6    Belgium: Modernization of the VAT chain

Belgium implemented the reform of its VAT chain on 20 February 2026. The objective of the reform is to further digitalise and simplify VAT processes. As from 1 May 2026, the former VAT current account was replaced by a new “VAT Provision Account”. At the same time, the rules governing VAT refunds were amended and the consequences of late VAT return submissions were tightened.

7    Romania: Greater legal certainty – but also new requirements for foreign businesses

On 20 April 2026, the Romanian High Court of Cassation and Justice ruled that negative VAT balances may be carried forward indefinitely to future VAT returns. This provides additional legal certainty for businesses with accumulated input VAT credits.

However, amendments to Romanian tax procedural law, adopted at the end of 2025, could cause some problems, as they stipulate that, as from 1 January 2026, companies without a Romanian bank account could, in future, be classified as inactive for tax matters. At present, the necessary implementing regulations to enforce this provision are not yet in place.