A General Approach to Business Adaptation

The amendments adopted as part of the 2026 tax reform establish a transitional regulatory model aimed at gradually adapting businesses to new conditions. Legislators have abandoned the rigid scenario of a one-time change in the tax burden and have effectively established a system of temporary tax breaks to mitigate the impact of the reform on small and medium-sized businesses.

This model combines two key elements: on the one hand, it maintains the overall focus on increasing tax transparency and expanding the tax base; on the other, it introduces mechanisms that allow businesses to redistribute their burden over time and adjust their accounting without significant financial losses.

VAT exemption in the catering sector

One of the central decisions was a temporary exemption from value-added tax for catering establishments using the simplified tax system. The exemption is valid from April until the end of 2026 and is granted regardless of the employee’s salary level in the previous period.

This effectively means eliminating one of the most controversial criteria that previously limited access to tax breaks. However, the legislator retains the income structure requirement: businesses must demonstrate that the majority of their revenue is generated by their core activities. Thus, the tax break remains targeted and aimed specifically at supporting industry participants.

From a practical standpoint, this decision requires companies to adjust their accounting processes. Specifically, it is necessary to:

• reconfigure cash register equipment to correctly reflect transactions without VAT;
• if necessary, issue corrective documents for transactions already completed;
• ensure comparability of accounting and tax data.

Failure to comply with these requirements may result in reporting discrepancies and subsequent tax risks.

Adjustment of the tax base and accounting for transitional transactions

Special attention is given to situations involving a gap between the receipt of income and the fulfillment of obligations. Given the changing tax regime, such transactions may lead to double taxation or a distorted financial result.

To eliminate these risks, special adjustment mechanisms have been introduced:

• a reduction in income by the amount of tax accrued upon shipment is permitted;
• previously recorded advance payments are adjusted;
• recalculation of the tax base is ensured when switching to a new regime.

Essentially, this is about equalizing tax consequences during the transition period. Legislators aim to ensure tax neutrality, whereby the change in regime does not result in additional burdens not caused by economic activity.

Changes in insurance premiums

The amendments also affected the application of reduced insurance premium rates. Here, too, there is a trend toward expanding opportunities for businesses through a more flexible approach to assessing criteria.

In particular, accounting for combined revenue across multiple activities is permitted, allowing more companies to meet the established conditions. Furthermore, in certain cases, the application of incentives is permitted without complying with the traditional requirements for the structure of income for the previous period.

Key features of regulation in this part:

• the list of incomes taken into account when calculating share indicators has been expanded;
• it is permissible to apply benefits in the current period with subsequent recalculation;
• The obligation to provide documentary evidence of the right to benefits remains.

Thus, the legislator places emphasis not only on formal criteria, but also on the actual content of the company’s activities.

Strengthening tax compliance requirements

Despite the provided concessions, the overall level of tax compliance requirements has not been reduced. On the contrary, with the expansion of tax benefits, the importance of accurate accounting and documentary evidence of transactions has increased.

Tax authorities retain broad oversight powers, including the right to request documents confirming the income structure, the validity of tax benefits, and the accuracy of calculations. This means that any benefits provided by the reform must be accompanied by increased attention to the quality of accounting.

For business, this translates into the need to:

• build a transparent system of accounting for income and expenses;
• promptly record changes in the tax regime;
• ensure comparability of data in various types of reporting.

Overall, the adopted changes demonstrate a shift toward a more adaptive tax regulation model. The government is striving not only to change tax rules but also to create conditions for their gradual implementation without significant disruption to businesses.

The 2026 transition period is becoming a separate regulatory stage, during which new approaches to interactions between taxpayers and the state are being developed. Companies receive additional tools to manage their tax burden, but their effective use requires a higher level of financial and legal development.

Thus, the reform is not limited to changing tax rates and application conditions. It affects the very logic of tax administration, making it more flexible but simultaneously more demanding in terms of the quality of accounting and the validity of decisions.