End of the Simplified VAT Regime

The simplified VAT tax regime will be eliminated on January 1, 2027, according to a clause in the 2025 Finance Act.

Businesses will transition to the regular genuine regime, which requires monthly or quarterly declarations, from the simplified regime, which allows for half-yearly VAT declarations and payments.

Due to the loss of half-yearly payment flexibility and greater declaration frequency, this move will need adjustments to accounting and invoicing systems as well as more accurate cash flow management.