Episode 1 - VAT's up - Q2 2026 - VAT & Indirect Tax Developments across CEE

00:00:00: Welcome to the Leitner-Leitner VAT Update, your quarterly briefing on indirect tax developments across Central and Eastern Europe prepared by our CEEVAT experts.

00:00:13: In the next few minutes we'll walk through the quarter's key changes – country by country leading with what matters most in each!

00:00:22: Let's get into it...

00:00:26: The triangulation simplification does not apply whether final customer collects the goods directly from their first supplier under an X-Works arrangement.

00:00:48: Other Austrian rulings cover abuse of law in property leasing, acquisition VAT for flat rate farmers using their VAT identification number and a denied export exemption.

00:01:18: milk, dairy basic meats and poultry.

00:01:23: If adopted it enters into force with the twenty-six state budget act.

00:01:29: a second bill also awaiting a vote would lift the mandatory registration threshold for micro and small businesses to eighty five thousand euros from January.

00:01:40: two thousand twenty seven

00:01:44: Croatia has extended its five percent rate on energy.

00:01:48: It covers natural gas, heating from thermal stations and firewood, pellets, briquettes & woodchips... ...and runs until the end of March.

00:01:57: twenty-twenty seven The government can now also float the VAT rate on excise energy products though it may not go below fifteen per cent.

00:02:07: Other Croatian updates cover fiscalisation of foreign currency e-invoices, cash on delivery transactions between businesses and the special scheme for travel agents.

00:02:39: once the taxpayer holds a valid invoice, even where the taxable event fell earlier.

00:02:45: Other Czech news covers second generation of electronic sales reporting changes proposed for twenty-seven to rates bad debts and car deduction cap recipient liability unpaid VAT advance payments.

00:03:04: Germany's Federal Ministry of Finance has changed its approach to non-economic use.

00:03:10: An increase in Non-Economic Use is no longer treated as a deemed supply, it triggers an adjustment of the input VAT deduction instead.

00:03:20: that applies to VAT groups and all open cases with previous treatment available until the end of twenty twenty six.

00:03:29: The federal fiscal court also held that a domestic liaison office is not the recipient of services ordered for.

00:03:58: That closes a gap open since two thousand and sixteen.

00:04:03: Hungary has also published the machine-to-machine interface for electronic VAT reporting expected from January twenty seven, And The new government plans lower rates on healthy foods in firewood plus an exemption For prescription medicines.

00:04:22: Poland's Ian voicing mandate is now in full swing.

00:04:26: Since April, the obligation to issue and receive invoices through The National System known as KSEF applies to all entrepreneurs' and local government units.

00:04:38: Only the smallest taxpayers remain under transitional rules.

00:04:43: Other Polish news covers a temporary eight percent rate on motor fuels, wider labour inspectorate powers to reclassify contracting arrangements, vetoed amendments to the disclosure and penal rules….

00:04:57: …and a deduction judgement now before the Court of Justice.

00:05:02: Serbia amended its VAT Act... ...and the practical change concerns returned goods since April – A return no longer counts as fresh supply!

00:05:13: it reduces the tax base of original supply instead, whatever reason for return.

00:05:20: The VAT rulebook changed as well with new rules on advance invoicing and deadlines to adjust the tax space and internal invoices issued through electronic invoising system known as SEF.

00:05:37: Slovenia's planned VAT changes are on hold.

00:05:40: The Act on Intervention Measures has been formally suspended because proceedings are pending before the Constitutional Court.

00:05:48: That freezes a five per cent rate for certain essential foods, gluten-free products, fertilisers and seeds.

00:05:57: It also freezes temporary cut energy from twenty two percent to nine and half percent.

00:06:04: Until the court rules, The existing VAT legislation applies in full and none of

00:06:33: Please let us know anytime.

00:06:35: Lightner, lightener!

00:06:36: We for you.