The French Finance Act for 2026 introduces a significant change with the creation of Article 273 septies E of the French Tax Code. Until now, the free distribution of goods in a promotional context was considered to preclude VAT deduction, regardless of the underlying business purpose. This restrictive approach was rooted in the civil law...
Following amendments to the Bulgarian Value Added Tax Act published in Official Gazette No. 115 on 30 December 2025, the reverse charge mechanism for domestic supplies of goods with assembly or installation has been abolished with effect from 1 January 2026. These transactions are now subject to the standard territorial rules, meaning Bulgarian VAT applies...
The Belgian Tax Authority (SPF Finances) has been rolling out a wide-ranging reform of its VAT administration, known as the “VAT chain” reform. The aim is to make VAT management more digital, more centralised and more straightforward for businesses without introducing new substantive rules. A significant milestone came into effect on 1 May 2026. The...
As in various EU Member States, the Spanish Government is considering a new approach to the VAT treatment of short-term accommodation rental services, as there is an increasingly widespread practice in many Spanish cities. The proposition would eliminate the VAT exemption for local short-term accommodation rental services. The main objective is to ensure a level-playing...
As per its European neighbours, Switzerland is intensifying its efforts to fight against VAT fraud, especially in the e-commerce industry. Starting from January 2025, new regulations will be implemented with…
Three weeks ago, the French newspaper Challenges mentioned a delay, or even a cancellation, of electronic invoicing in France. On May 31, 2024, during the latest meeting held by the National Forum on Electronic Invoicing, the AIFE confirmed the maintenance of the implementation schedule for the reform, the availability of a public platform (the PPF),...
In a joint declaration signed in April, the U.S Trade and Technology Council and the European Union pledged to cooperate on electronic invoicing, and in particular to ensure interoperability between systems set up in the U.S. and by member states. Certain parts of the data structure should be standardized, while there should be room for...
The dedicated group FNFE-MPE organized a day dedicated to electronic invoicing on March 7, 2024. Postponing the reform was at the heart of the debate. The obligation to issue invoices in electronic format will ultimately be implemented in two waves: 2026 for large companies and ETIs – 2027 for smaller companies. Basic franchise companies will...
The implementation date of the e-invoicing reform initally planned on July 1st, 2024 has been postponed in France.
The new date will be communicated in the work to adopt the Finance Act for 2024.
Check the rules on e-commerce, dropshipping & marketplaces since the VAT reform of July 1st 2021, and choose whether you want to use the One Stop Shop or not.
Directive 2022/542 of April 5, 2022 made it impossible to combine a reduced VAT rate on purchase with the application of a margin VAT mechanism on resale. France, which until now has allowed a 5.5% VAT rate on the purchase and a VAT margin mechanism on the resale of works of art, is obliged to...
Following the European Commission’s 2018 proposal to reform VAT rates an agreement was reached between EU finance ministers regarding the update of VAT rate rules.
Three measures emerge from this agreement:
1° Updating the list of goods and services to which all Member States may apply reduced VAT rates:
In particular,...
Since 1st January 2020, all suppliers or subcontractors eligible for direct payment of contracts with the French State, local authorities and institutions (B2G) must send their invoices in electronic form. The 2020 Finance Act has provided for an extension to electronic invoicing regulations for business-to-business (B2B) transactions. The entry into force of these measures, initially...
On August 13th 2021, the French tax authorities updated the Official Public Finance Bulletin (BOFIP) to reflect the changes brought about by the One Stop Shop reform, which came into effect on July 1st 2021. This update provides practical clarifications on implementing the reform as well as details and specific local regulations. For more information...
