VAT & Sales Tax Updates: September 2025

September 2025 saw key VAT and sales tax changes across Europe and the U.S. From Romania’s new VAT threshold to tax cuts in Alabama, here’s what’s new.

Romania: VAT registration threshold raised

• From September 1, 2025, Romania increased its VAT registration threshold from RON 300,000 to RON 395,000, under the EU small business scheme.
  
  
• Businesses crossing the old threshold but under the new one have extra leeway; those above the new threshold by end‑August had until September 10 to register.

Denmark: Zero VAT on books

• Denmark will reduce VAT on books (print and possibly digital) from 25% to 0%, effective in 2026.
  
  
• The move is part of a cultural policy aimed at counteracting falling reading levels, especially among children. 

Germany: Reduced VAT for restaurants & catering

• Under Germany’s draft Tax Amendment Act 2025, VAT on food served in restaurants and catering (excluding beverages) will drop from 19% to 7% from January 1, 2026.
  
  
• The reform is intended to ease cost pressures on hospitality when inflation and business costs are high.

United States: Sales tax reductions and exemptions in Alabama 

• Grocery tax drop: As of September 1, 2025, Alabama has reduced the state sales tax on groceries from 3% to 2%. This is the second cut in two years (previously from 4% to 3%).
  
  
• Exemptions on baby and essential products: Also effective September 1, Alabama has implemented a sales‑tax exemption on a range of essential items including maternity & baby products (diapers, bottles, maternity clothes), breastfeeding supplies, menstrual products, etc. This exemption is not permanent and is set to expire in three years unless extended.