VAT Newsletter fourth quarter 2025

– 26.02.2026

Latest VAT developments in Central and Southeastern Europe

Please find below the VAT newsletter for the fourth quarter of 2025 highlighting the latest developments in the field of VAT in:

Austria, Bulgaria, Croatia, Czech Republic, Germany, Hungary, Poland, Serbia, Slovakia, Romania, Slovenia.

Austria

CASE LAW

No input tax deduction for services not actually performed (Section 12 para 1 in conjunction with Section 11 para 14 of the Austrian VAT Act)
- Input VAT cannot be deducted if the invoiced services were not actually performed, even if the invoice includes VAT and the supplier is liable under Section 11(14) of the Austrian VAT Act, regardless of the recipient’s good or bad faith (Supreme Administrative Court 18.08.2025, Ra 2023/13/0006).
Late Invoicing and its Impact on Triangulation Simplification, Ruling request to ECJ (Art 42 lit a VAT Directive)
- The Supreme Administrative Court has submitted a request for a preliminary ruling to the ECJ, seeking clarification on whether a newly issued invoice, provided after the supply has taken place, can trigger Triangulation simplification.
- Additionally, it requests guidance on whether the late issuance of such an invoice allows the supplier to benefit from the triangular transaction rules retroactively, and what evidence is required to demonstrate that the invoice was actually received by the customer (Supreme Administrative Court 07.10.2025, Ro 2024/15/0007).
Input Tax Deduction for Preparatory Rental Activities (Section 12 para 1 of the Austrian)
- Input VAT deduction for preparatory activities related to a future taxable rental is permissible. The decisive criterion is that the intention to carry out taxable rental activities is clearly recognizable and appropriately documented, for example through concrete planning measures, construction activities, or comparable evidence (Federal Finance Court 28.07.2025, RV/5100319/2024)
VAT Refund procedure (No 2850)
- In case of a domestic VAT group, each group member that was granted a VAT number (and not the group parent company) must independently apply for the VAT refund in EU Countries acc to Council Dir.2008/9/EC via FinanzOnline (VAT Guidelines No 2850).

Bulgaria

AMENDMENTS TO VAT ACT/FISCAL CODE

Since 1 January 2026
- Businesses established in Bulgaria can apply both a domestic and an EU small enterprise scheme, supplying goods or services in other EU Member States without charging VAT, provided turnover limits of EUR 100,000 (EU total) and national thresholds are not exceeded. (Link).
- The threshold for mandatory VAT registration in Bulgaria shall be EUR 51,130. The threshold will now be calculated on a calendar year rather than over 12 consecutive months, which could span two calendar years, as previously stated in Article 96 of the VAT Act. (Link).
- Foreign EU supplier of goods with installation or assembly will have to register for VAT purposes in Bulgaria, as the reverse-charge mechanism is no longer applicable for such supplies (Link).

Croatia

AMENDMENTS TO THE VAT ACT/FISCAL CODE

Since 1 January 2026
- The deadline for submitting VAT returns and related prescribed forms has been moved from the 20th of the month for the previous month to the end of the current month for the previous month. This change applies to following returns:
  - VAT Return (Form PDV)
  - EC Sales List (Form ZP)
  - EU Purchases List (Form PDVS)
  - Report on supplies of goods to other EU Member States previously imported under procedures 42 and 63 (Form PZ 42 and 63) (Link)
  - With the introduction of mandatory e-invoicing in the B2B sector, the submission of forms (DON-H, I-RA, PDV-F, PPO, and U-RA) was abolished, as well as the removal of the requirement to obtain consent for receiving invoices electronically. (Link).

Czech Republic

AMENDMENTS TO THE VAT ACT/FISCAL CODE

Since 1 January 2026
- A new electronic system has been introduced for VAT refunds to tourists from non-EU countries on exported goods.
- Exemptions for selected financial services are clarified in line with ECJ case law, excluding payment collection, radio/TV fee collection, and pension or recurring payment collections from the public.
- A new mechanism allows for the refund of VAT paid mistakenly or without legal grounds, subject to prescribed conditions (Link)

TAX AUTHORITIES’ PRACTICE

Since 1 January 2025
- The GFD updated its guidance on the VAT treatment of passenger transport services via apps like Uber and Bolt, effective 1 January 2025. Key clarifications include mandatory VAT registration thresholds, the timing of registration, recognition of drivers as carrying out economic activity even without a trade license, and the application of the reverse charge mechanism for services received from foreign companies. The update standardizes VAT obligations for all participants in digital passenger transport services (Link)

CASE LAW

VAT exemption for intra-Community supplies
- VAT exemption requires both formal compliance and proof that the supplier neither knew nor could have known about participation in fraud; the tax authority must prove fraud, while the taxpayer must show reasonable due diligence in selecting business partners, such as checking VAT registration, having written contracts, and using non-cash payments. (Link).

Germany

TAX AUTHORITIES’ PRACTICE

Since 1 January 2025
- New administrative guidelines have been issued on the tax exemption for educational services under Section 4 no. 21 of the German VAT Act (UStG), including additional clarification on the classification of online educational services (Link).

CASE LAW

Exercise of the right to deduct input VAT
- Input VAT for goods and services acquired in the past may be deducted under the general taxation procedure (and not the VAT refund procedure) at the time the invoice was issued, even if at that time no taxable supplies are carried out anymore. (Link)

Hungary

PLANNED AMENDMENTS TO THE VAT ACT/FISCAL CODE

Increase of the VAT exemption threshold
According to the modification the threshold of the VAT exemption increased to:
- HUF 20 million in 2026
- HUF 22 million in 2027
- HUF 24 million in 2028
  (Art. 188 (2) of the Hungarian VAT Act)

Measures to reduce the tax burden on businesses, group taxation
Under the amendment to group taxation, the joint and several liability of all members is extended, and if the group representative ceases to exist, the members must appoint and notify a new representative within 15 days, otherwise the tax authority will designate the member with the highest tax performance as the new representative. (Art. 8 (4a) of the Hungarian VAT Act)

Change in VAT report structure
According to the modification as of July 1 2026, the voluntary data provision in the VAT report (M and K sheets) on the details of the deducted amount and VAT key will become compulsory. (Appendix 10 c) of Hungarian VAT Act)

VAT rate reduction
According to the modification the VAT rate on the sale of beef and related offal will be reduced from the current 27% to 5% as of January 1,2026. (Appendix 3, point 60 of Hungarian VAT Act)

TAX AUTHORITIES’ PRACTICE

Published 10 November 2026
- The Hungarian Tax Authority clarified that the driving examination fee forms part of the consideration for the training and examination service, and that training providers are deemed to supply the examination. The VAT exemption for adult education applies to both services, provided all statutory conditions are met.
Published 1 October 2025
- Gas traders must report gas sales and purchases in MWh instead of cubic meters. Indirect customs representatives must report unrounded tax bases and VAT amounts in HUF, and group taxpayers must indicate the group identifier. Corrections for prior periods remain subject to the previous rules.

Poland

AMENDMENTS TO THE VAT ACT/FISCAL CODE

National e-Invoice System (KSeF)
- Since 1 February 2026
  - Large entrepreneurs with 2025 sales (incl. VAT) exceeding PLN 200 million must issue and receive invoices via KSeF.
- Since 1 April 2026
  - All other entrepreneurs and local government units are subject to the same obligation.
A “grace period” is planned in 2026, exempting certain penalties and VAT sanctions; B2C invoices can be voluntarily issued through the KSeF system. (Link)
Increase of the VAT exemption threshold
- Since 1 January 2026, the VAT exemption threshold has increased to PLN 240,000 of sales value (excluding tax). (Link)

PLANNED AMENDMENTS TO THE VAT ACT/FISCAL CODE

Tax on goods and services
- The Ministry of Finance plans to extend buyers’ joint and several liability for the seller’s tax arrears to include blank or intangible invoices, particularly where the taxpayer knew the invoice was issued by a non-existent entity, documented unrealized activities, or contained amounts inconsistent with economic reality, as well as services in Annex 15 to the VAT Act up to PLN 15,000, including consulting, management, accounting, advertising, or research. (Link)

Serbia

AMENDMENT TO THE RULEBOOK ON ELECTRONIC INVOICING

Postponement of the Preliminary Tax Return
- The introduction of the preliminary VAT return has been postponed. Its application is now scheduled to begin with the tax period of January 2027, or January–March 2027 for quarterly taxpayers. (VAT Act („Official Gazette RS“, no. 84/2004, … , and 109/2025))
Since 11 October 2025
- The Ministry of Finance has adopted an amendment to the Rulebook on Electronic Invoicing introducing the option to submit a notice of correction for the deduction of previously declared tax via the SEF system. The submission of such notices through SEF is not mandatory; issuance outside the SEF platform remains permitted (Rulebook on electronic invoicing („Official Gazette RS“, br. 47/2023, 116/2023, 65/2024, 73/2024, 101/2024, 107/2024, 56/2025 i 85/2025)).

ADVANCE RULINGS OF THE MINISTRY OF FINANCE

VAT Treatment in the Context of Mandatory Electronic Invoicing
- The Ministry of Finance has clarified that, in cases where the law prescribes the issuance of an electronic invoice, the VAT recipient may exercise the right to deduct input VAT exclusively on the basis of an accepted electronic invoice. Accordingly, if a supplier issues a paper invoice instead of a legally required electronic invoice, the VAT recipient is not entitled to input VAT deduction, regardless of whether all other statutory conditions are met. (Advance Ruling of the Ministry of Finance no. 003002091 2025 10520 004 000 011 004)

Slovakia

AMENDMENTS TO THE VAT ACT/FISCAL CODE

Since 1 January 2026
- Foreign taxable persons registered for VAT will be able to apply the reverse charge on imports starting January 2026 within the framework of centralized customs procedure.
- A 50 % cap on VAT deduction applies to the purchase, leasing, import, or intra-EU acquisition of eligible vehicles, as well as to related costs such as fuel, spare parts, and maintenance. Full VAT deduction remains available only for vehicles used exclusively for business purposes, subject to appropriate documentation, or for specific activities such as taxi services, car rental, driving schools, or professional passenger transport.
- The VAT rate on selected types of food (with higher sugar and salt content) will be increased from 19 % to 23 % (Link).

TAX AUTHORITIES’ PRACTICE

Since 1 January 2025
- The Financial Directorate of the Slovak Republic has issued a methodological guideline on the registration of domestic and foreign persons as value added tax (VAT) payers under the new rules for small businesses effective from 1 January 2025. The guideline sets out the fundamental terms for the correct application of the registration regime, as well as the applicable procedural rules and statutory deadlines (Link).

Romania

AMENDMENTS TO THE ACT / FISCAL CODE

Updated RO e-VAT forms
- ANAF has updated the RO e-TVA forms, which are used for automated review of declared output VAT and as a risk indicator for potential incorrect returns. The obligation to respond to discrepancy notices remains suspended until 31 December 2025, with fines applicable from January 2026 (Order 2351/2025 regarding the model and content of the “RO e-VAT Pre-filled Return” form)
Virtual Events – place of supply
- EU-aligned rules for online/virtual events now apply in practice. VAT due where the customer is located, affecting cross-border suppliers (Ordinance no. 22/2025 for amending and supplementing Law no. 227/2015 on the Fiscal Code).

Slovenia

AMENDMENTS TO THE VAT ACT/FISCAL CODE

Since 1 January 2028
- A new Act on electronic invoicing has been introduced, which requires all business entities registered in the Business Register (AJPES) to issue e-invoices to other businesses from 1 January 2028 (postponed from the initially proposed 1 January 2027). Businesses will be able to use e-SLOG, EU-compliant syntaxes, or other internationally accepted standards (Link).

TAX AUTHORITIES’ PRACTICE

Since 1 October 2025
- The Slovenian Financial Administration has issued a notice on joint liability in connection with new VAT records submission requirements, under which all VAT-registered taxable persons are required, as of July 2025, to submit detailed records of incoming and outgoing transactions.
- Initial analyses for July 2025 revealed discrepancies where input VAT was claimed where suppliers are not fulfilling their VAT obligations. In such cases, the Financial Administration will issue warning notices and may initiate control procedures; from the date of receipt, the taxable person is deemed to be aware of the associated risk under Article 76.b(2) of the VAT Act (Link).