- Importance of VAT Updates: As businesses prepare for 2025, staying informed about Value-Added Tax (VAT) changes is essential to ensure compliance and avoid potential mistakes, particularly for non-established entities.
- Key VAT Rate Changes: Significant adjustments include Israel’s VAT increase from 17% to 18%, Finland raising its standard VAT rate to 25.5%, and Slovakia’s new rates of 23% and 19% effective January 2025, among others.
- Temporary VAT Adjustments: Spain’s temporary zero VAT rate on essential foodstuffs has ended, with a new 2% VAT rate implemented, set to return to a reduced 4% by 2025. Ireland has extended its reduced VAT rate on gas and electricity to 9% until April 2025.
- New Compliance Measures: Several countries, including Estonia and Romania, are introducing new VAT compliance measures for 2025, such as combined VAT return forms and the gradual implementation of the SAF-T reporting obligation for non-established taxpayers.
- E-invoicing Mandates: Significant e-invoicing changes are on the horizon, including Romania’s new reporting requirements, Germany’s mandate for receiving e-invoices in B2B transactions, and Latvia’s planned e-invoicing mandates for B2G and B2B transactions by 2026.
Source Marosa
