European Commission unveils 2026 agenda including priorities on VAT and Customs
On 21 October 2025, the European Commission released its 2026 Work Programme, “Europe’s Independence Moment.”The programme sets out the Commission’s policy agenda for the coming year: sustainable economic prosperity, defence and security, social resilience, environmental quality of life, democracy and values, and international partnerships.
2026 VAT and Customs priorities
VAT and customs remain key areas of focus, with several proposals from previous years still under active discussion. This is in addition to the now approved VAT in the Digital ViDA reforms. At the heart of the ongoing discussions are the adopted 2028 Customs Reforms. Among them are:
- revisions to tariff treatment for distance sales and the abolition of the low-value customs duty exemption;
- the establishment of a new Union Customs Code and the creation of a European Union Customs Authority;
- amendments to VAT rules for businesses involved in cross-border e-commerce, including simplified schemes for declarations and payments;
- suspension of customs duties on selected imports;
- adjustments to customs duties and tariff quotas for goods originating in the United States; and
- a modernised taxation system for energy products and electricity across the EU.
