In this update, we provide a summary of important VAT and Customs Tax developments from September 2025 with implications for global business operations.
EU Parliament adopts CBAM simplification measures under Omnibus package
EU eases CBAM compliance for SMEs—new de minimis exemption and streamlined reporting rules adopted.
Phased implementation of the new Belgian VAT chain put on hold until further notice
The Belgian tax authorities have put on hold the phased entry into force of the revised VAT chain. As a result, a number of transitional measures continue to apply, with important implications for VAT compliance.
Input VAT Deduction: Germany Clarifies Acceptance of Invoices in Other EU Languages
A new circular from the German Ministry of Finance makes it easier to claim input VAT from invoices written in other official EU languages. This reduces administrative burdens and audit risks for internationally active companies.
Extraordinary sale of business-use property excluded from VAT pro-rata calculation
For entities carrying out VAT-exempt activities, the sale of a business property – even when categorised as an asset held for sale – must be excluded from the pro-rata recovery computation, where such sale qualifies as an extraordinary transaction. The decision adopts a substance-over-form approach to ensure that the pro-rata reflects only the taxpayer’s ordinary business operations and not occasional transactions.
Per 2026, the Netherlands introduces VAT revision on real estate services
From 1 January 2026, VAT on real estate-related investment services over EUR 30,000 will be subject to a five-year regularisation period. Therefore, the use (VAT taxed or otherwise) of the real estate should be monitored throughout this five-year period to determine VAT recovery.
Budget Consolidation 2026 impacts VAT, too
Commencing 2026 consumable goods with increased amount of sugar and salt shall be subject to increased VAT rate and vehicles not used 100% for business, shall be subject to 50% VAT deduction.
UK Supreme Court confirms tax point deeming provisions determine whether supply occurred within VAT group for group disregard
UK SC has ruled that VAT is chargeable on success fees invoiced after a supplier exits a VAT group, even if services were performed while both parties were group members. This decision prioritises time of supply rules over VAT grouping provisions, with implications for deferred consideration arrangements.