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Starting October 1, 2026, a new law comes into force that redistributes the tax burden under long‑term contracts. Now, if changes in legislation create a VAT obligation for the seller, and the buyer cannot deduct the tax, the seller must calculate VAT from the agreed price rather than charging it on top.
In practice, this means that the extra tax burden falls on the seller. This approach follows the position set out by the Constitutional Court at the end of 2025, which declared it unconstitutional to automatically recover additional tax amounts from the buyer when tax legislation changes.
In practice, this means that the extra tax burden falls on the seller. This approach follows the position set out by the Constitutional Court at the end of 2025, which declared it unconstitutional to automatically recover additional tax amounts from the buyer when tax legislation changes.
When the New Rules Apply
The new rules apply only when several conditions are met at the same time.
First, after the contract was signed, amendments to the Tax Code created a VAT obligation for the seller.
Second, the buyer is not entitled to deduct the tax — for example, because they apply the simplified tax system or are exempt from VAT for other reasons.
Third, the parties have not changed the contract price, and the contract contains no provision on how to act if the legislation changes.
If all these conditions are met, the seller calculates VAT using the settlement method based on the price of the goods stated in the contract. No invoice is issued to the buyer.
First, after the contract was signed, amendments to the Tax Code created a VAT obligation for the seller.
Second, the buyer is not entitled to deduct the tax — for example, because they apply the simplified tax system or are exempt from VAT for other reasons.
Third, the parties have not changed the contract price, and the contract contains no provision on how to act if the legislation changes.
If all these conditions are met, the seller calculates VAT using the settlement method based on the price of the goods stated in the contract. No invoice is issued to the buyer.
What the Law Does Not Cover
It is important to note that the new mechanism does not apply if the seller was already liable for VAT before and only the tax rate changed during the contract term. For example, the rate increase from 20% to 22% that took effect in 2026 is not covered by these rules.
Nor does the law apply when the seller lost the right to VAT exemption not because of a change in the law, but due to their own circumstances — for instance, exceeding the revenue limit under the simplified tax system.
Nor does the law apply when the seller lost the right to VAT exemption not because of a change in the law, but due to their own circumstances — for instance, exceeding the revenue limit under the simplified tax system.
What This Means for Businesses
The new rules create risks for sellers who entered into contracts without being VAT payers. If during the contract term they become VAT payers and the buyer cannot deduct the tax, the seller will have to pay VAT out of their own profit.
The seller has the right to go to court to request a price increase, but only by up to half the VAT amount. However, this mechanism is not always available and requires legal proceedings, which can be lengthy and costly.
There is also a practical problem: the seller does not always know whether the buyer is entitled to a deduction. The law does not oblige the buyer to disclose this information and does not specify how it should be confirmed.
The seller has the right to go to court to request a price increase, but only by up to half the VAT amount. However, this mechanism is not always available and requires legal proceedings, which can be lengthy and costly.
There is also a practical problem: the seller does not always know whether the buyer is entitled to a deduction. The law does not oblige the buyer to disclose this information and does not specify how it should be confirmed.
How to Prepare Your Business
To avoid unexpected tax consequences, companies should take several steps in advance.
Review all existing long‑term contracts and assess which ones may be affected by the new law. Check whether the contracts contain a tax clause — a provision on how to allocate the tax burden if the legislation changes. If no such clause exists, consider signing supplemental agreements. It is also worth verifying whether the buyer is entitled to a deduction and, if necessary, requesting supporting documents from them.
When entering into new contracts, it is advisable to include clear provisions on how the tax burden will be allocated in the event of future changes in legislation.
Review all existing long‑term contracts and assess which ones may be affected by the new law. Check whether the contracts contain a tax clause — a provision on how to allocate the tax burden if the legislation changes. If no such clause exists, consider signing supplemental agreements. It is also worth verifying whether the buyer is entitled to a deduction and, if necessary, requesting supporting documents from them.
When entering into new contracts, it is advisable to include clear provisions on how the tax burden will be allocated in the event of future changes in legislation.
How Acsour Can Help Your Business
Acsour experts are ready to help you adapt to the new rules. We can:
- audit your existing contracts for tax risks;
- advise on the application of the new VAT rules;
- assist with amending contracts, and help adjust your internal processes.
Submit a request — our experts will audit your contracts and help you adapt to the changes.
