VAT and Customs Priorities in the DG TAXUD Management Plan 2026

Summary

VAT digitalisation accelerates: 2026 focuses on implementation of VAT in the Digital Age (ViDA), including EU‑wide digital reporting, e‑invoicing foundations, platform economy VAT reforms, and strengthened anti‑fraud tools. [taxation-c….europa.eu]
Major EU customs reform continues: DG TAXUD advances the EU Customs Reform Package, covering the new Union Customs Authority, revised Union Customs Code, removal of the €150 exemption, and stronger links between customs and VAT enforcement. [taxation-c….europa.eu]
VAT–customs convergence intensifies: Enhanced data sharing, streamlined import VAT collection (IOSS), and tighter controls on e‑commerce and small consignments are central priorities to tackle fraud and unfair competition. [taxation-c….europa.eu]

Detailed

VAT in the Digital Age (ViDA): From legislation to execution

A core priority for 2026 is the operational rollout of VAT in the Digital Age (ViDA). Having secured political agreement, DG TAXUD shifts its focus from policy design to implementation planning, coordination with Member States, and IT readiness.

Key VAT workstreams include:

EU digital reporting requirements (DRR) for cross‑border B2B transactions, replacing recapitulative statements with near real‑time VAT data reporting.
Progressive introduction of structured e‑invoicing, aligned with EN 16931 standards, as the backbone for fraud detection and compliance automation.
Platform economy VAT reform, ensuring platforms are made deemed suppliers in specific scenarios, particularly in short‑term accommodation and passenger transport.

These measures aim to modernise VAT control systems while reducing VAT gaps and administrative burdens in the medium term. [taxation-c….europa.eu]

Customs reform: building a new EU customs framework

The Management Plan confirms 2026 as a key delivery year for the EU Customs Reform Package, with DG TAXUD leading both legislative and technical developments.

Priority customs actions include:

Advancing the new Union Customs Code, moving towards a single, harmonised EU customs framework.
Establishing the EU Customs Authority, tasked with risk management, data aggregation, and supervision of large e‑commerce flows.
Abolition of the €150 duty‑free threshold, directly impacting low‑value imports and reinforcing VAT and customs revenue protection.
Enhanced customs data requirements, especially for distance sales and online marketplaces.

These reforms are closely aligned with VAT reforms, particularly in import VAT collection and fraud prevention. [taxation-c….europa.eu]

Import VAT and e‑commerce: stronger controls at the border

DG TAXUD places significant emphasis on import VAT integrity, particularly for e‑commerce and small parcels, which remain high‑risk areas.

Planned actions include:

Expansion and tighter supervision of the Import One‑Stop Shop (IOSS) to simplify VAT compliance while reducing abuse.
Stronger cooperation between customs and tax authorities, using shared datasets to detect undervaluation, misclassification, and carousel fraud.
Integrated risk analysis, linking VAT data, customs declarations, and platform information for better enforcement.

This reflects a strategic shift towards treating VAT and customs as an integrated control environment, rather than separate silos. [taxation-c….europa.eu]

Data, cooperation and fraud prevention

Across both VAT and customs, DG TAXUD’s 2026 focus is on data‑driven enforcement:

Development of common EU data models for VAT and customs.
Improved administrative cooperation tools (Eurofisc, VIES evolution).
Support for Member States in aligning national systems with EU‑level digital infrastructure.

The objective is to enable preventive rather than reactive enforcement, reducing fraud while improving compliant businesses’ experience. [taxation-c….europa.eu]

Conclusion

The DG TAXUD Management Plan 2026 clearly positions VAT digitalisation and customs reform as mutually reinforcing pillars. With ViDA and the EU Customs Reform Package moving into execution mode, 2026 is a transition year from legislation to systemic change, fundamentally reshaping how VAT and customs are reported, controlled, and enforced across the EU. [taxation-c….europa.eu]