Global VAT Guide: October 2025

Our October edition of the Global VAT Guide brings you key indirect tax and VAT developments across Europe, Asia and the Americas – including Belgium’s postponed VAT Chain rollout, Greece’s new digital processes and EU VAT directive alignment, Romania’s proposed logistics tax and the U.S. removal of the $800 De Minimis threshold.

Use this summary to stay informed of the latest regulatory changes, effective dates and compliance implications for your business.

Belgium – Postponement of VAT Chain legislative package

Published: 26 August 2025 | Effective: Postponed (new timeline TBA)

Summary:

Belgium’s Federal Public Service Finance (FPSF) has officially announced a postponement of the VAT Chain legislative package implementation, following consultations with the Institute for Tax Advisors and Accountants (ITAA).

Reasons for the delay:

To ensure smoother alignment with the upcoming Belgian eInvoicing obligations in 2026, allow professionals time to adapt to digital VAT reporting, and refine the scheme based on feedback.

Key implications:

• No change to VAT payment bank account — FPSF account remains valid after 1 October 2025
• Revised implementation date to be announced following further consultation
• Gradual rollout planned, with detailed technical and procedural guidance expected in late 2025

Impact:

Businesses will benefit from additional preparation time, but should still advance digital-readiness initiatives ahead of 2026.

Key actions:

• Monitor further communications from FPSF and ITAA regarding the revised timeline and implementation guidance
• Begin preparing for mandatory eInvoicing from 2026 as it will affect VAT reporting
• Review accounting and ERP systems for digital VAT reporting readiness

Greece – Digital process for changing Business Activity Number

Published: 28 August 2025 | Effective: Immediately

Summary:

The Independent Public Revenue Authority (AADE) introduced new streamlined and fully digital procedures for natural and legal persons to change their Business Activity Number (ΚΑΔ) and VAT status via the myAADE portal. These changes are governed by decisions A.1122/2025 and A.1123/2025, published in the Government Gazette on 28 August 2025. 

Key features:

• Instant submission and processing of changes
• Taxpayers can modify their ΚΑΔ, VAT regime, branch details, and more in one streamlined process
• Searchable index of ΚΑΔ codes based on NACE sectors/classes and CPA categories
• Users receive help texts and informative/prohibitive messages to guide accurate selection
• Colour coding and descriptive labels aid in distinguishing ΚΑΔ types for VAT purposes
• Electronic submission of supporting documents

Types of changes covered: 

• Change of registered office location 
• Change in accounting books category per Greek standards 
• Inclusion/exclusion of intra-community transactions and excise tax 
• Amendments to company articles of association, chamber registration and company title 
• Commencement/modification/cessation of domestic and foreign establishments (except activities) 
• Changes in taxation options related to intra-community distance sales and supplies of telecommunications, broadcasting, and electronic services 

Impact:

Streamlined compliance — reduced processing time, full digitisation of taxpayer updates.

Actions for businesses:

• Use the Change of Business Details app on myAADE for all VAT or ΚΑΔ amendments
• Ensure electronic submission of required documentation within 30 days of the change

Greece – Alignment with EU VAT Directive on Small Enterprises and Place of Supply

Published: 28 July 2025 | Effective: Retroactive to 1 January 2025

Summary:

Law No. 5222/2025 aligns Greece’s VAT legislation with EU Directives 2020/285 and 2022/542, modernising rules for small enterprises and place of supply for event-related services.

Key updates

• Place of supply for services:
  • On-site events: Taxed where the event takes place
  • Virtual events: Taxed where the beneficiary is established or resides
• Small Enterprise Regime (Article 44, 44a, 44b)
  • Implements the cross-border small business exemption in line with Directive 2020/285.
  • Eligibility Criteria for use of the exemption in Greece by taxable persons established in another Member State:
    • Domestic turnover in Greece: does not exceed €10,000
    • EU-wide turnover does not exceed €100,000 annually
    • The taxable person must notify their Member State of establishment of their intention to apply the exemption
    • They must obtain a special VAT identification number with the suffix “EX” from their home Member State for this purpose.

Impact:

This ensures consistent treatment for hybrid/virtual events and introduces cross-border VAT exemption for micro-businesses.

Actions for businesses:

• Event organisers must carefully determine the correct place of supply for VAT based on whether events are held physically or virtually.
• Small businesses operating across borders can benefit from the VAT exemption in Greece, provided they meet the turnover thresholds and follow the registration procedures set out in their home Member State.
• Tax systems and invoicing processes may require updates to reflect these changes, particularly for platforms and service providers dealing with cross-border sales.

Poland – Deduction of VAT for vehicle-related costs 

Published: 22 September 2025 | Effective: Until 31 December 2028

Summary:

The EU Council has approved Poland’s request to extend its derogation limiting input VAT deduction on vehicles not used exclusively for business to 50%.

The derogation does not apply to: 

• Vehicles with more than 9 seats (including the driver)
• Vehicles with a maximum total weight exceeding 3,500 kg
• Any expenditure that is entirely related to the taxable person’s business activity

Impact:

Maintains current partial deduction structure, extending compliance stability for taxpayers using mixed-purpose vehicles.

Actions for businesses:

• Prepare report by 31 March 2028 for any further extension request
• Continue applying 50% deduction on qualifying vehicle expenses
• Review and document vehicle-use policies.

Romania – Place of supply rules for events

Published: 1 September 2025 | Effective: 1 September 2025

Summary:

The Romanian Tax Administration has aligned its VAT place of supply rules for event-related services with EU standards.

The changes apply to both B2B and B2C transactions involving services in the cultural, artistic, sporting, scientific, educational and entertainment sectors.

• Onsite events: Place of supply is where the event is held
• Virtual events: Place of supply is where the beneficiary is established, has a permanent domicile or habitual residence

Impact:
Improves harmonisation with EU VAT framework and provides clarity for hybrid event providers.

Type of Event/Service	Place of Taxation	Beneficiary Type	Legal Reference
Physical events (e.g., fairs, exhibitions, cultural, artistic, sports, educational)	Where the activities are actually carried out	Non-taxable persons	Article 278(5)(f)
Virtual events (e.g., streamed online or via other digital means)	Where the beneficiary is established, domiciled, or usually resides	Non-taxable persons	Article 278(5)(i)
Physical events – access services	Where the events actually take place	Taxable persons (B2B)	Article 278(6)(b)
Virtual events – access services	Where the beneficiary is established	Taxable persons (B2B)	Article 278(2)

Romania -Proposes logistics tax on low-value imports

Published: 1 September 2025 | Effective (if adopted): 1 November 2025

Summary:

Romania published a draft law introducing a logistics tax of 25 Lei per parcel for non-EU distance sales of goods valued under €150.

Key points:

• If adopted, the new law introduces additional reporting and payment obligations for parties involved in distance sales from non-EU countries. 
• The following parties may be held liable: supplier of the goods, sender of the parcel, the facilitating digital platform
• Postal operators in Romania will be required to collect, declare and remit the tax monthly, by the 25th of the month following the parcel’s delivery

Exemptions include: 

• Transit deliveries: If the final destination is outside Romania, the parcel is not subject to the logistics tax
• Returned goods: If goods are returned to the sender, the tax is non-refundable

Actions for businesses:

• Assess impact on shipping and pricing models
• Prepare to include parcel-origin information on customs documents
• Monitor legislative adoption timeline

Slovenia – eInvoicing mandate proposal for private sector

Published: 23 July 2025 | Effective (proposed): 1 January 2027

Summary:

Slovenia has proposed extending mandatory eInvoicing from the public to the private sector, aligning with EU standards.

Key details:

• Key details of the Draft Proposal were submitted to the National Assembly on 23 July 2025 for review
• The draft law is expected to come into effect from 1 January 2027.
• It will be mandatory for all businesses to issue and receive eInvoices 
• Paper invoices will no longer be legally valid or required
• File standard: e-SLOG 2.0 (compliant with EU EN 16931 standard)
• Inter-company Transactions: Issuance and receipt of eInvoices require a formal agreement between client and vendor.
• The platform for eInvoice communication will be the Public Payments Administration of the Republic of Slovenia (UJP). 

Impact:

High – all businesses must transition to structured eInvoicing by 2027.

Actions for businesses:

• Begin ERP and invoicing system upgrades for digital VAT compliance
• Coordinate with suppliers and customers for electronic invoicing readiness
• Ensure compliance with UJP registration requirements

Bosnia and Herzegovina -Amendment to VAT refund rules for foreign travellers

Published: 8 August 2025 | Effective: 8 August 2025

Summary:

The Indirect Taxation Authority (ITA) increased the minimum purchase threshold for VAT refunds to foreign travellers from 100 BAM to 200 BAM and introduced a new refund form (PDV-SL-2).

Impact:
Retailers and travellers must use the updated form and comply with the new threshold.

Actions for retailers:

• Update systems with new VAT refund forms (PDV-SL-2)
• Train staff on the new threshold requirements

Actions for travellers:

• Be aware VAT refunds apply only to purchases 200 BAM or more per receipt.
• Claims must be submitted using the new form

Singapore -GST filing and payment deadlines clarified

Published: 21 August 2025 | Effective: Ongoing

Summary:

The Inland Revenue Authority of Singapore (IRAS) released a clarification on the GST return filing and payment deadlines for GIRO and non-GIRO taxpayers.

Key details:

Both GIRO and non-GIRO taxpayers are required to submit their GST returns no later than one month after the end of their prescribed accounting period.

Payment deadlines will vary depending on payment method:

• Non-GIRO payer
  • Filing deadline is 1 month after end of period
  • Payment deadline is the same as filing deadline – payment must be made by this date

• GIRO payer
  • Filing deadline is 1 month after end of period
  • Payment deadline is 15 days after the filing deadline – IRAS auto-deducts payment via GIRO
    • Note: GIRO taxpayers only need to ensure return submission by the deadline
    • Payment is handled automatically by IRAS.

Extension allowances:

• First-time GST return filing: 1 month extension
• Technical issues: 2 week extension
• Implementation of new IT system: 2 week extension
• Crucial accounting staff on medical leave: 2 week extension
• Business undergoing restructuring: 2 week extension
• Software issues when submitting via API: 2 week extension

Impact:

Ensures consistent and transparent filing procedures.

Actions for businesses:

• Businesses should ensure timely GST return submission, regardless of payment method
• GIRO taxpayers should maintain sufficient funds for IRAS auto-deduction
• If delays are anticipated, business should submit extension requests with appropriate justification and within the stipulated periods.

Sri Lanka – VAT on non-resident digital service providers 

Published: 3 September 2025 | Effective: 1 April 2026

Summary:

The Office of the Cabinet of Ministers of Sri Lanka approved a postponement of the planned VAT obligations for non-resident digital service providers from 1 October 2025 to 1 April 2026, allowing more time for compliance preparation.

Impact:

This measure concerns non-resident suppliers of digital services to customers in Sri Lanka, who will be required to register, collect, and remit VAT on supplies made to Sri Lankan consumers. 

Actions for businesses:

• Non-resident digital providers should continue preparing for VAT registration and compliance by 1 April 2026
• Local advisors and tax teams should inform clients and monitor for further implementation guidance or transitional rules from the Sri Lankan Inland Revenue Department (IRD). 

Thailand – Launch of “D-VAT & SBT” digital tax system

Published: 1 September 2025 | Effective: 1 September 2025

Summary:

Thailand’s Revenue Department officially launched “D-VAT & SBT”, a new integrated digital platform designed to streamline VAT and Specific Business Tax services. 

Taxpayer-Centric approach – the system is built around the needs of taxpayers, ensuring services are accessible, convenient and efficient. 

All VAT and Specific Business Tax processes are integrated into a single digital system covering: 

• Taxpayer registration and updates 
• Application submissions 
• Tax return filing 
• Tax refund processing 
• Tax return management 

The platform was developed using Design Thinking principles to: 

• Understand user needs deeply 
• Identify pain points in existing systems 
• Implement user-driven solutions for a smoother experience 
• User Participation and Feedback 

The Revenue Department encourages taxpayers and stakeholders to actively participate in system development by: 

• Testing features 
• Providing feedback and suggestions 
• Helping improve system usability and functionality 

Impact:

Modernises indirect tax administration and streamlines taxpayer interactions.

Actions for businesses:

• Access the new portal for VAT and SBT processes
• Test system functionalities and report feedback to the Revenue Department

United Kingdom – Digital Handshake to get authorised as Tax Agent

Effective: Immediatly

Summary:

HMRC has updated its guidance regarding the digital handshake process for tax agent authorisation, introducing new rules for client data and link validity.

Key changes include: 

• Client details required for authorisation may vary depending on the tax type
• The previous guidance on adding more clients to an authorisation link request has been removed
• Link expires after 21 days

Impact:

Simplifies authorisation but requires timely client response to avoid expiration.

Actions for agents:

• Send authorisation links directly to clients.
• Track pending approvals to ensure completion within 21 days

Step-by-Step Authorisation Process using the Digital Handshake: 

• Sign in to your Agent Services Account
• Select “Ask a client to authorise you.” 
• Enter your client’s details and proceed to the final page to get an authorisation request link
• Copy the authorisation request link and send it directly to your client
• Your client must click the link and respond to the request within 21 days of you receiving the link
• Once your client approves the request, you are authorised to act on their behalf with HMRC. 

United States – Removal of $800 De Minimis custom exemption

Published: 30 July 2025 | Effective: 29 August 2025

Summary:

An Executive Order by the White House has eliminated the $800 De Minimis threshold for duty-free imports into the U.S. Previously, goods valued under $800 could enter the U.S. duty- and tariff-free, under the De Minimis exemption. 

Tariffs will now depend on the country-specific IEEPA tariff classification: 

• IEEPA tariff of 16% or less: $80 per item 

• IEEPA tariff of 16% to 25%: $160 per item 

• IEEPA tariff above 25%: $200 per item 

IEEPA = International Emergency Economic Powers Act. Rates reflect strategic or trade-related classifications based on national economic interests. 

Impact:

Significant increase in landed costs for importers and eCommerce retailers, especially sourcing from high-tariff regions e.g. China

Actions for businesses:

• Importers and online retailers will need to recalculate import and landing costs for goods under $800
• Prepare for additional customs declarations

United States – Washington: sales tax on advertising services  

Published: 23 July 2025 | Effective: 1 October 2025

Summary:

Washington State Department of Revenue will apply sales tax and Business & Occupation (B&O) tax to advertising services, covering both digital and non-digital formats.

Taxable services include the creation, preparation, production or dissemination of advertisements. 

Exempt services:

• Technology services 
• Web hosting services 
• Domain name registration 
• Media and publishing services 
• Newspaper advertising 
• Printing services 
• Radio and television broadcasting (within Washington State) 
• Out-of-Home Advertising Services 
• Billboard advertising 
• Street furniture advertising 
• Transit advertising 
• Place-based advertising (e.g., in-store displays, point-of-sale advertising) 
• Dynamic or static signage at live events 
• Naming rights 
• Fixed signage advertising 

Impact:
Expands Washington’s sales tax scope; digital marketing providers face new compliance obligations.

Actions for businesses:

• Review client contracts for tax exposure
• Adjust pricing and invoicing systems to account for sales tax

Work with indirect tax experts

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