As in our previous professional article, this summary highlights the international VAT changes and compliance developments that may affect the cross-border operations, commercial structures or compliance processes of Hungarian businesses.
One of the most important lessons of the 2026/Q2 period so far is that European tax authorities are increasingly linking VAT, customs and transactional data and information, while several countries are also tightening administrative and reporting requirements applicable to foreign businesses.
Below, we summarise in detail the most important developments from the perspective of Hungarian businesses.
New EU Import Duty from 2026: A new burden on e-commerce parcels below EUR 150
From 1 July 2026, the European Union will abolish the current customs duty exemption for consignments below EUR 150 and introduce a temporary, uniform EUR 3 customs duty on certain low-value imported goods arriving under the IOSS framework.
The EUR 3 duty may not simply arise per consignment, but may also be charged multiple times based on the goods descriptions included in each customs declaration that fall under different customs tariff headings. As a result, the customs burden on a consignment below EUR 150 containing several different types of products may even exceed EUR 3.
The change may primarily affect:
- e-commerce operators,
- marketplace models,
- businesses selling directly to EU consumers,
- as well as structures relying on Asian supply chains.
Since the new import duty may arise not per parcel, but by product type, i.e. by customs tariff heading, product classification and the structuring of goods movements may become commercially sensitive issues as well.
How May the New EU Import Duty Affect Hungarian E-commerce Businesses?
For Hungarian companies, it is particularly advisable to review:
- current IOSS models,
- marketplace sales structures,
- product classification practices,
- as well as the extent to which current pricing models are sensitive to the new import charges.
The new system is expected to result not only in additional costs, but also in a more significant administrative burden.
Belgian VAT Reform 2026: Stricter VAT Controls and Longer Adjustment Periods
Belgium has adopted a comprehensive VAT reform that tightens compliance rules and the tax authority’s audit powers in several areas.
One of the most important elements of the reform is that a 15-year VAT adjustment period may become applicable to certain major renovations that are comparable to new real estate based on their economic life. For certain properties subject to the taxable leasing option, a 25-year period will continue to apply.
In addition, the Belgian tax authority will receive stronger powers to handle late VAT returns. If a company fails to submit its VAT return on time, the authority may determine an assessment based on estimates.
The refund rules are also becoming stricter:
- fast VAT refunds will be conditional on an error-free and timely compliance history,
- in addition, the authority is increasingly applying data-driven monitoring,
- and the procedural rules on subsequent corrections of returns and the management of VAT balances will also become stricter.
What Should Hungarian Companies with Belgian VAT Registration Pay Attention To?
For Hungarian companies that have a Belgian VAT registration, carry out project activities in Belgium, or operate in Belgium with significant capital investments, it may be advisable to review their VAT return and refund processes.
The trend clearly indicates that European tax authorities are reacting to compliance errors increasingly quickly and in an increasingly automated manner.
Belgian VAT Rates 2026: Changes Affecting Accommodation Services and Plant Protection Products
From March 2026, Belgium will increase the reduced VAT rate applicable to several products and services.
Based on the change:
- the VAT rate for certain short-term furnished accommodation services and camping sites increased from 6% to 12%;
- the VAT rate for plant protection and plant health products increased from 12% to the standard rate of 21%.
What Business Impact May the Increase in Belgian VAT Rates Have?
The change may be important for businesses operating in tourism, the hospitality sector, as well as agricultural and FMCG chains.
It may be advisable to review current contractual pricing structures, VAT-inclusive pricing models, and margin-sensitive transactions.
Slovakian VAT Changes 2026: New Product Rates and Passenger Car VAT
Slovakia is amending its VAT system in several stages from 2026 onwards.
Certain FMCG products — such as sweetened beverages, syrups, jams or certain instant products — will again fall under the 23% standard VAT rate.
The specific VAT rate must always be determined based on the exact customs tariff and legal classification of the product; therefore, the commercial name of the product alone is not necessarily sufficient.
In addition, a new uniform 50% input VAT deduction cap will be introduced for certain passenger cars, regardless of the actual proportion of business use.
Who May Be Most Affected by the Slovakian VAT Rules?
The changes may particularly affect:
- FMCG and retail operators,
- corporate groups operating through Slovakian subsidiaries,
- companies operating vehicle fleets,
leasing models.
In practice, therefore, the changes may justify rethinking pricing, preparing new profit impact analyses, and reviewing vehicle structures and procurement models at the affected companies.
Gibraltar Transaction Tax 2026: A New Indirect Tax Instead of the Former VAT-free Mode
From April 2026, Gibraltar introduced a new 15% goods transaction tax regime.
Although formally outside the VAT system, the tax operates economically as an indirect taxation mechanism, and may significantly reshape commercial structures routed through Gibraltar.
When May the Gibraltar Transaction Tax Be Relevant for a Hungarian Business?
For companies that:
- structure commercial processes through Gibraltar,
- use UK–EU supply chains,
- or operate import/distribution structures involving Gibraltar,
it may be advisable to reassess rules on the origin of goods, pricing models, and current indirect tax structures.
What Do the International VAT Trends of 2026 Q2 Show?
The most important European trends are:
- increasing data-driven tax authority control,
- closer integration of VAT and customs data,
- faster compliance responses,
- longer risk and adjustment periods,
- in some cases increasing administrative expectations towards foreign businesses,
- the expansion of mandatory electronic invoicing and digital reporting obligations,
- increased scrutiny of e-commerce import transactions,
- and the growing importance of product classification and master data.
Today, international VAT is no longer solely a technical tax issue. It is increasingly becoming an operational, supply chain planning, data quality, ERP and technology, cash flow, corporate management and governance issue.
Errors in international VAT compliance may no longer only result in tax penalties, but may also delay VAT refunds, worsen cash flow, hinder sales, and lead to IT or supply chain problems.
International VAT Checklist for Hungarian Businesses for the Second Half of 2026
- Review of foreign VAT registrations and filing processes
- Reassessment of IOSS and e-commerce import models
- Modelling of pricing and margin impacts
- Strengthening of cross-border VAT controls
- Checking the consistency of customs and VAT data
Through our international network, we continuously monitor European tax authority and indirect tax trends, as well as the practical experience of individual countries.
Our experts provide support, among other things, in reviewing international VAT structures, managing foreign VAT registrations, assessing OSS and IOSS models, handling VAT refunds, and preparing for electronic invoicing and digital reporting requirements.
Should you wish to review whether the above changes affect your operations or corporate group, our experts would be pleased to assist you in a short consultation.
Frequently Asked Questions About International VAT Changes in 2026
What Are the Most Important International VAT Changes in 2026?
In 2026, the most important changes include the new customs burden on low-value EU e-commerce imports, changes to Member State VAT rates, restrictions on VAT deduction for passenger cars, stricter VAT return controls, and the spread of mandatory electronic invoicing.
When Does a Hungarian Business Need to Register for VAT Abroad?
Foreign VAT registration may become necessary, for example, in the case of local stockholding, use of foreign warehouses, domestic supplies of goods, installation transactions, imports, or certain services supplied locally. The obligation must be assessed separately in each country and for each transaction model.
Does OSS or IOSS Replace Foreign VAT Registration?
OSS and IOSS may simplify VAT payment for certain consumer sales, but they do not replace all foreign registration obligations. In the case of foreign warehouse stock, local imports, B2B sales or own movement of goods, local VAT registration may still be required.
What Does ViDA Mean for Hungarian Businesses?
ViDA means the EU-level expansion of electronic invoicing and digital transaction reporting. The main obligations applicable to cross-border B2B transactions will enter into force from 2030, but businesses must prepare their invoicing, ERP and data management systems earlier.
How Can a Company Prepare for International VAT Changes?
As a first step, it is advisable to map cross-border sales, foreign VAT registrations, the OSS and IOSS models applied, and the sources of invoicing and customs data. This can then be followed by identifying registration, filing, pricing and system development tasks.
