Country and European Union News November 2025

31 October 2025

Slovakia Parliament approves lifting range of unhealthy foods from reduced 19% to standard 23%

Starting 1 January 2026, Slovakia will increase the VAT rate from 19% to 23% on selected food products that are high in sugar or salt. The measure is part of the government’s broader public health and fiscal strategy.

The higher VAT rate will apply to items such as:

• Chocolate and confectionery
• Biscuits and cakes
• Ice cream and jams
• Sweetened soft drinks
• Salty snacks such and crisps

The move aligns with similar initiatives across Europe aimed at discouraging the consumption of unhealthy foods and generating additional tax revenue.

Germany provides further guidance on how e-invoicing will work in the country

The German Ministry of Finance (Bundesministerium der Finanzen) issued an updated ‘letter’ which provides guidance on the role out of e-invoicing. This letter includes information on how invoices should be issued and how affected businesses can correct errors on invoices.

This new requirement applies to resident businesses selling to other VAT-registered businesses within Germany. Under the mandate, businesses will report their sales to the German tax authorities via a new e-invoicing platform rather than sending invoices directly to their customers.

The goal of this invoice-reporting regime is to combat VAT fraud by providing tax authorities with real-time visibility into when VAT is charged and collected.

Malta to Introduce E-Reporting and E-Invoicing to Tackle VAT Gap

In October 2025, the Maltese Tax and Customs Administration (MTCA) announced a phased rollout of digital reporting requirements (DDR), including pre-filled VAT returns and mandatory e-invoicing. This is aimed at reducing Malta’s VAT gap, which currently stands at €508 million.

The MTCA is actively preparing for the implementation of real-time reporting and e-invoicing in line with the European Union’s VAT in the Digital Age (ViDA) initiative. Under ViDA, standardised e-invoicing and DDR must be adopted by 1 July 2030 at the latest.

Bhutan will introduce 5% Goods and Service tax from 1 January 2026

During October, Bhutan confirmed that it will introduce Goods and Services Tax at 5% from January 2026.

This will replace the current Sales Tax regime in the country and will affect foreign traders as they will have to register for GST if they exceed the GST registration threshold of BTN 5million (approx. £42,500) in the country.