Key takeaways
- Romania: VAT registration threshold raised from RON 300,000 to RON 395,000, giving small businesses more flexibility before needing to register.
- Denmark: Will apply 0% VAT on books (print and digital) starting 2026 to encourage reading and cultural engagement.
- Germany: Plans to reduce VAT on restaurant and catering food from 19% to 7% (excluding beverages) beginning January 2026, easing cost pressures on hospitality.
- United States (Alabama): Grocery tax cut from 3% to 2% effective September 1, 2025 — second reduction in two years.
- Sales tax exemptions introduced for maternity, baby, and menstrual products, lasting three years unless extended.
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.
Frequently asked questions
What VAT changes occurred in September 2025?
In September 2025, several countries updated their VAT rates. For example, Denmark announced a reduction on books from 25% to 0%, effective in 2026. Other countries made minor adjustments to digital and cultural goods.
How will the new VAT rules affect e-commerce businesses?
E-commerce businesses will need to update their pricing and accounting systems to comply with the revised VAT rates. This includes changes to invoices, checkout systems, and reporting obligations.
Where can I find official guidance on these VAT updates?
Answer 3: Official guidance is typically published on national tax authority websites. Companies should monitor updates from local authorities or consult with tax professionals to ensure compliance.
