VAT Changes Published Jun 10, 2026 Updated Jun 10, 2026 8 min read

Upcoming VAT Changes in 2026 and 2027

A practical, source-backed guide to confirmed EU VAT changes in 2026 and 2027, including ViDA, national VAT rate updates, and e-commerce customs changes.

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This tracker summarises the confirmed VAT changes and VAT-adjacent EU compliance changes that businesses should watch in 2026 and 2027. It is focused on changes that are backed by official government or European Commission sources and have clear effective dates.

Last fact check: 10 June 2026.

Quick summary

The biggest EU-wide VAT milestone in this period is VAT in the Digital Age (ViDA). The package was adopted in 2025 and is being phased in through 2035. The first 2027 change is narrow but important: OSS and IOSS users will see legislative clarifications, and the OSS scope starts expanding for certain energy supplies.

At national level, the most visible confirmed 2026 VAT rate changes are in Finland, Sweden, the Netherlands, France, and Ireland. Some took effect earlier in 2026; Ireland's hospitality and hairdressing change is scheduled for 1 July 2026.

E-commerce sellers should also prepare for a separate EU customs change from 1 July 2026: a temporary EUR 3 customs duty per item on low-value imported consignments up to EUR 150. This is not a VAT rate change, but it affects landed cost, checkout communication, and import workflows for non-EU distance sales into the EU.

Confirmed timeline

Effective date	Jurisdiction	Change	Main businesses affected
1 January 2026	Finland	Reduced VAT rate lowered from 14% to 13.5% for goods and services such as food, restaurant and catering services, books, pharmaceuticals, passenger transport, and accommodation. Public broadcasting moves to 13.5%.	Retailers, food businesses, publishers, hotels, transport providers, health and cultural sectors
1 January 2026	Netherlands	VAT on short-stay lodging moves to the 21% rate. Separate facilities, such as breakfast or pool access, may still qualify for 9% when charged separately or allocated in an all-in price.	Hotels, holiday parks, pensions, travel platforms
1 March 2026	France	VAT for household and similar waste collection and treatment services is harmonised at 5.5%.	Municipal service providers, waste operators, public-service contractors
1 April 2026	Sweden	VAT on sales of food, including takeaway food without additional restaurant services, is reduced to 6%. Restaurant and cafe consumption remains at 12%.	Grocers, takeaway operators, food trucks, cafes, restaurants, voucher issuers
1 July 2026	Ireland	VAT on food and catering services and hairdressing services is reduced from 13.5% to 9%.	Hospitality, catering, hot takeaway, hairdressing
1 July 2026	EU customs / e-commerce	Temporary EUR 3 customs duty per item starts for low-value imported consignments up to EUR 150, replacing the duty exemption until 1 July 2028.	Non-EU sellers, marketplaces, IOSS users, customs declarants, logistics providers
1 November 2026	EU customs / e-commerce	Product identifiers become mandatory for affected low-value import flows to improve customs traceability.	Marketplaces, sellers, customs brokers, logistics providers
1 January 2027	EU VAT / ViDA	OSS and IOSS clarifications take effect; OSS begins expanding for certain B2C energy supplies such as gas, electricity, heating, cooling, and e-charging related supplies.	Cross-border B2C sellers, energy and e-charging suppliers, tax teams using OSS/IOSS

What changes in 2027 under ViDA?

The 2027 ViDA step is not a broad VAT rate change. It is a compliance and registration change. The European Commission describes the 1 January 2027 phase as targeted clarifications for OSS and IOSS users, with the OSS further extended to include B2C supplies in the e-charging sector.

For businesses, the practical takeaway is to review how cross-border B2C transactions are mapped to OSS, especially if you sell energy-related services or operate in sectors likely to be covered by later Single VAT Registration reforms.

The larger ViDA changes arrive later:

1 July 2028: platform economy deemed-supplier measures and major Single VAT Registration reforms begin, with some Member State timing flexibility for platform rules.
1 July 2030: cross-border B2B digital reporting requirements based on e-invoicing begin.
1 January 2035: Member States with domestic real-time digital reporting must align with the EU model.

Country-by-country notes

Finland: reduced rate moves to 13.5%

Finland lowered the 14% reduced VAT rate to 13.5% from 1 January 2026. The Finnish Tax Administration lists affected categories including groceries and food, restaurant and catering services, animal feed, physical exercise and cultural activities, books, pharmaceuticals, passenger transport, and accommodation.

This is a pricing, invoicing, and point-of-sale change. Businesses should check tax code mappings for advance payments and deliveries that cross the effective date, because the applicable VAT rate depends on the delivery or service performance date, not only the invoice date.

Netherlands: lodging moves to 21%

From 1 January 2026, the Netherlands applies the 21% VAT rate to short-stay lodging. The Dutch Tax Administration states that separate facilities such as breakfast, swimming pool access, or attraction access can remain at the reduced 9% rate where applicable.

Hotels and travel platforms should pay close attention to bundled prices. If lodging and separate facilities are sold together for one price, the consideration must be split between the 21% and 9% elements using market values.

Sweden: food sales reduced to 6%

Sweden reduced VAT on food sales to 6% from 1 April 2026. The Swedish Tax Agency says this includes takeaway food, while food and drinks consumed as a restaurant or cafe service remain at 12%.

The boundary between food sales and restaurant services matters. Packaging or transport charged by the same seller can follow the food VAT rate, while separate transport services or optional single-use items may be taxed differently.

France: waste services harmonised at 5.5%

France harmonised the VAT rate for household and similar waste collection and treatment services at 5.5%, applying to chargeable events from 1 March 2026. The change covers the main waste services and services that contribute to carrying them out.

This is narrower than a general French VAT rate change, but it matters for public-service contracts, municipalities, waste operators, and invoices spanning March 2026.

Ireland: hospitality and hairdressing drop to 9%

Ireland will reduce the VAT rate from 13.5% to 9% for food and catering businesses and hairdressing services from 1 July 2026. The Budget 2026 statement says the measure is intended to support service-sector businesses facing cost pressures.

Operators should update tills, booking engines, menu pricing, and supplier/customer communications before the effective date. Businesses with deposits, vouchers, and events crossing 1 July should confirm the correct tax point treatment with Irish Revenue guidance.

Ireland also extended the 9% VAT rate on gas and electricity bills to 31 December 2030, which is relevant for household energy costs but is not a new 2027 rate change.

EU e-commerce: low-value imports get a temporary duty

From 1 July 2026, the EU applies a temporary EUR 3 customs duty per item on low-value consignments up to EUR 150 imported from outside the EU. The measure applies until 1 July 2028, when normal customs duties are expected to apply through the e-commerce customs data hub model.

This is a customs duty, not VAT. It still belongs on a VAT watchlist because it changes the total import cost and interacts with IOSS, special arrangements, customs declarations, and marketplace checkout flows.

The Commission also says product identifiers can be declared voluntarily from 1 July 2026 and become mandatory from 1 November 2026.

Practical checklist for businesses

Review product tax codes for every affected country and category.
Separate rate changes from tax point rules: delivery date, service performance date, deposits, and vouchers can decide which rate applies.
Audit bundled offers, especially Dutch lodging packages and Swedish food/restaurant combinations.
Update ecommerce checkout logic for low-value imports into the EU from non-EU countries.
Add monitoring for ViDA milestones, especially if you use OSS/IOSS or sell cross-border B2C.
Keep source links with each tax rule in your ERP or tax engine so future audits can trace why a rate changed.

What is not confirmed yet?

Several EU VAT reforms are scheduled after 2027, especially platform economy deemed-supplier rules, Single VAT Registration changes, and digital reporting requirements. They are important, but they are not 2026 or 2027 rate changes.

This page tracks confirmed official changes. Proposed national budget measures, draft laws, and unofficial consultancy summaries should be treated as watchlist items until the relevant government or EU legal text confirms the effective date and scope.