Effective January 1, 2026, the Finnish Parliament has officially implemented a decrease in the reduced Value Added Tax (VAT) rate, moving it from 14% down to 13.5%. This change is particularly relevant for businesses registered under the VAT Special Schemes (OSS and IOSS) that trade within the Finnish market.
New rules to break down bureaucratic barriers and strike the criminal networks siphoning billions from European citizens.
As of January 1, 2025, the European reform of the small business VAT exemption scheme has officially taken effect across the European Union.
Originating from Directive (EU) 2020/285 of 18 February 2020, this reform aims to harmonize exemption thresholds and simplify VAT compliance for micro-enterprises, SMEs, and self-employed professionals operating within the EU single market. Read more
At the 92nd WCO Policy Commission and 145th/146th Council meetings, held in Brussels, international customs leaders and the European Union renewed their commitment to modernising global trade governance.
Last week, the World Customs Organization (WCO) hosted its annual high-level sessions, bringing together senior customs officials from its 186 member countries. A central focus of the discussions was the implementation of the WCO Modernisation Plan, a strategic effort to enhance the organisation’s operational effectiveness. Read more
The European Commission has released a new set of recommendations aimed at accelerating investments in clean technologies through targeted tax incentives.
As part of the ongoing implementation of the Clean Industrial Deal (CID), the European Commission has unveiled a comprehensive Recommendation on Tax Incentives to support Europe’s shift toward a sustainable and competitive industrial base. This initiative is designed to help EU Member States craft tax policies that attract private investment in green innovation and industrial decarbonisation. Read more
The European Union has reached a pivotal agreement on updating its VAT framework, particularly concerning e-commerce imports and the taxation of distance sales involving goods from non-EU countries.
This revised approach is set to improve the efficiency of the Import One-Stop Shop (IOSS) system. By simplifying the VAT declaration and payment process, the changes aim to reduce red tape for importers within the EU and strengthen measures against VAT evasion. Read more
A new report published on 18 December 2024 by the European Commission highlights substantial improvements in value added tax (VAT) collection in most EU Member States between 2018 and 2022.
The annual EU VAT Gap Report, which assesses the difference between expected VAT revenues and actual collections, shows that Member States lost approximately €89 billion in VAT in 2022, compared to €121 billion in 2018. These losses are primarily attributed to VAT fraud, evasion, avoidance, non-fraudulent bankruptcies, calculation errors, and other factors.
Reducing the VAT compliance gap is a positive development, as lost revenues undermine governments’ ability to fund essential services such as education, healthcare, and infrastructure. Read more
From January 1, 2025, small enterprises will be able to take advantage of a special VAT regime (SME scheme) designed to:
However, businesses opting for VAT exemption will forfeit the right to deduct VAT on expenses related to their exempt sales. Read more
On October 2, the EU and Norway signed an agreement to update their existing framework for administrative cooperation in VAT matters, focusing on fraud prevention and claim recovery. This revised agreement introduces new tools to strengthen their collaboration.
The original EU-Norway agreement, which came into effect on September 1, 2018, was the first international treaty focused on VAT cooperation. After six years, the partners have amended it to align with Council Regulation 904/2010 on VAT fraud prevention and Council Directive 2010/24/EU on mutual assistance for the recovery of tax-related claims. Read more
