End of Year Checklist: Find the 2025 Key VAT Updates
In this article, we’ll guide you through an end-of-the-year checklist, gathering the most important VAT changes for 2025, with a focus on non-established entities
As the year comes to a close, businesses are busy wrapping up financial tasks, finalizing budgets, and preparing for a fresh start in 2025. Among the many to-dos, staying updated on Value-Added Tax (VAT) changes is critical to ensure compliance and avoid costly mistakes. Tax regulations evolve each year, and 2025 is no exception, bringing key updates that could impact your business operations and reporting processes.
In this article, we’ll guide you through an end-of-the-year checklist, spotlighting the most important VAT changes for 2025, with a focus on non-established entities. Whether you’re a seasoned tax professional or a business owner looking for clarity, this resource will help you stay ahead of the curve as we transition into the new year!
VAT Rate Changes 2025
- Israel: Israel increases VAT Rate from 17% to 18% by 2025. Learn more.
- Finland: Finland raised standard VAT rate to 25.5%, effective September 2024. Now, further changes are implemented to extend the list of goods and services at reduced rate of 14% by 1 January 2025. Learn more.
- Switzerland: VAT updates for 2025 include changes in VAT exemption scope and a product category added to the reduced VAT rate of 2.6%. Learn more.
- Slovakia: Slovakia approved the increase of the VAT rates to 23% and 19% by January 2025. Learn more.
- The Netherlands: The VAT Rate on agriculture products is raised by 2025. Learn more.
- Ireland: The temporary reduced rate to gas and electricity to 9% is again extended until April 2025. Also, starting on 1 January 2025, VAT on heat pump installed is reduced to 9%. Learn more.
- Spain: On 30 September 2024 ended the temporary zero VAT rate on essential foodstuffs in Spain. These products are now subject to 2% VAT rate, and will be back to reduced rate 4% by 2025. Also, the olive oil is planned to be considered within the list of essential foodstuffs. Learn more.
- Estonia: Estonia will increase the VAT rate applied to accommodation services and press publications. Also, the Estonian government is planning a new increase of the standard VAT rate from 22% to 24% by July 2025. Learn more.
Other VAT Changes 2025
- EU: EU SME Scheme implementation. This new EU SME scheme will open the VAT exemption simplification to the cross-border activity. Eligible businesses may benefit from the SME scheme in other Member States if conditions are met. Learn more.
- EU: New place of supply rules for online live events. Learn more.
- Estonia: The VAT and ESL return forms will be combined as of January 2025 reporting period. Learn more.
- Switzerland: Switzerland introduces the annual VAT reporting frequency effective by January 2025. Learn more.
- Switzerland: The Swiss VAT rules for e-commerce are changing by 2025, introducing the deemed supplier model for online platforms. Learn more.
- Romania: The country is introducing gradually the SAF-T reporting obligation, which will be due as from January 2025 for non-established taxpayers. Learn more.
- Norway: New SAF-T format to be used as of January 2025. Learn more.
- Belgium: Upcoming VAT Compliance Changes in Belgium coming into effect starting 1 January 2025. Impact VAT returns and VAT refund processes. Learn more.
EU E-invoicing Mandates 2025
- Romania: Significant changes were introduced to Romanian e-invoicing system, including the obligation to report B2C transactions and simplified invoices. Learn more.
- Germany: Mandate to be able to receive e-invoices in B2B transactions. Learn more.
- Latvia: E-invoicing mandate for B2G and B2B transactions in Latvia approved. According to the regulation approved, B2G e-invoicing will be mandated by 2025, and B2B e-invoicing by 2026. Learn more.
- Spain: Verifactu, or billing system requirements obligation, is set to be implemented by July 2025, although we expect a postponement to January 2026. Learn more.
How Can Marosa Help you?
Marosa is actively monitoring developments in e-invoicing requirements and other VAT compliance areas, offering expert consultation to help businesses prepare for and adapt to upcoming regulatory changes.