In 2025 European Union and the United Kingdom introduce a number of significant legal changes that are of great importance for both businesses and citizens. From new climate regulations, by Mandatory ESG reporting, to tax facilitation for small businesses and accessibility requirements - new legislation will affect the way businesses and citizens operate in Europe. This article outlines the 6 most significant legal changes that come into force in 2025 and will affect businesses and travellers to the UK.
1. new EU climate change liability legislation
The European Union, in line with its climate policy, adopted new ones in 2025, stricter rules on responsibility for climate change.
Tightening of CO₂ emission standards.
The EU has set itself an ambitious target a reduction in greenhouse gas emissions of at least 55% by 2030emissions compared to 1990 levels. For many industries, such as transport, industry or energy, the introduction of these standards entails the need to adapt production and operational processes. Companies that fail to meet the new requirements face heavy financial penalties.
RED III Directive - Renewable Energy Sources
The EU has introduced a binding target which requires Member States to achieve at least 42.5% share of RES in the energy mix by 2030. For energy companies, this means investing in renewable energy sources and reducing dependence on fossil fuels.
Extended corporate responsibility
In response to growing public expectations, the EU is introducing legislation to increase the the responsibility of companies for their environmental impact. There is an increasing focus on responsibility for emissions in global supply chains. While the details of new regulations are still being worked out, the trend is clear - companies will need to monitor and reduce their emissions more transparently.
European climate law
The EU has introduced legislation requiring Member States to achieve Climate neutrality by 2050. Companies, operating in the Union, will have to adapt their strategies to these ambitious targets, including by introducing appropriate CO₂ reduction measures and reporting the results.
2 ESG reporting - new requirements for companies
From 2025 ESG reporting (Environmental, Social, Governance) will become mandatory for an increasing number of companies in the European Union. The new regulations, introduced under the CSRD directives (Corporate Sustainability Reporting Directive), expand the scope of companies required to disclose data on the environmental, social and corporate governance impacts of their activities.
Three key areas of ESG
ESG covers three key areas of corporate responsibility:
- Environmental - e.g. CO₂ emissions, resource consumption, waste management, impact on biodiversity.
- Social - workers' rights, gender equality, working conditions, relations with local communities.
- Governance - Governance ethics, financial transparency, anti-corruption, oversight structure.
Who must report ESG?
Until now, the ESG reporting obligation has applied to large listed companies. The CSRD extends this obligation to the following entities:
- large companies with more than 250 employees and a turnover of more than EUR 40 million - from 2025 (for 2024),
- other large companies - as of 2026,
- medium and small listed companies - from 2027,
- non-EU companies operating in the European Union - from 2029,
- other companies voluntarily opting for ESG reporting - which may make them more attractive to investors and business partners.
Impact of ESG on the company's operations
ESG affects the following:
- access to finance - Investors are increasingly demanding ESG reports before deciding to cooperate,
- reputation building - companies that care about sustainability enjoy greater trust from customers and stakeholders,
- compliance with regulations - Failure to report can result in financial penalties and impediments to accessing markets.
ESG reporting is not only a new legal obligation, but also an opportunity to increase competitiveness and build a sustainable business model. Companies should already prepare for the upcoming changes by implementing appropriate reporting strategies and systems.
3. SME procedure - VAT exemption for small and medium-sized enterprises
From 1 January 2025, the following will become mandatory in the European Union. SME procedurewhich will make it easier for small and medium-sized enterprises (SMEs) to account for VAT in cross-border transactions. The new rules will allow companies to benefit from VAT exemptions in other EU countries, without the need for local registration, provided that their annual turnover in the EU does not exceed EUR 100,000.
Conditions for applying the VAT exemption in the EU
In order to be able to apply the VAT exemption in different EU countries, entrepreneurs have to fulfil several conditions:
- not exceeding a threshold of EUR 100 000 annual turnover - Once this is exceeded, the exemption ceases to be valid,
- compliance with local regulations - each country may have additional requirements,
- obtaining an EX identification number - a unique number assigned to a company that allows it to benefit from VAT exemption in other EU countries.
Obtaining an EX number and issuing invoices
The EX number, required under Article 113a(2)(2) of the VAT Act, can be obtained by submitting an application to the tax office. The process takes approximately 35 working days and the procedure is supervised in Poland by the Second Tax Office Warsaw-Śródmieście.
Companies using the VAT exemption under the SME procedure will issue a simplified invoices, including among others:
- date of issue and invoice number,
- details of the seller and buyer,
- the name of the goods/services and their quantity,
- the total amount due,
- EX number identifying the taxable person in the EU VAT system.
New VAT rules from 2025 mean less bureaucracy and more flexibility for SMEs operating in different EU countries. With the SME procedure and simplified invoices, companies will avoid costly VAT registration in each country, making it easier to expand into foreign markets.
4 European Accessibility Act - new requirements for companies
European Accessibility Act (European Accessibility Act, EAA) is an EU directive (2019/882) of 17 April 2019 on accessibility requirements for products and services, which aims to ensure that key products and services are accessible to people with disabilities.
From 28 June 2025. companies will have to adapt their products and services to the accessibility standards set out in the EAA. This means that digital and physical barriers must be removed to make technology easier to use for people with disabilities.
Which companies and products will the new rules cover?
The new rules will cover companies operating in the EU, which offer:
- computer hardware and operating systems,
- ATMs, payment terminals, e-books,
- e-commerce and websites,
- banking, telephone and audiovisual services,
- passenger transport (tickets, information systems).
Adaptation to accessibility requirements
Companies will need to adapt their websites to international accessibility standards (e.g. WCAG 2.1), ensuring, among other things, clear text and intuitive navigation. Self-service devices, such as ATMs or ticket machines, must offer audible instructions and intuitive menus. Online shops should be designed to allow easy browsing and ordering.
Companies that do not comply may face financial penalties or a ban on the sale of products and services in the EU. Therefore, entrepreneurs should already be analysing their processes in terms of accessibility and implementing changes.
The European Accessibility Act is an opportunity to develop and increase the competitiveness of your business. Compliance with the new legislation will help you avoid penalties, improve your image and attract new customers.
5. developments in EU labour law
The European Union has also adopted changes to labour legislation in 2025. Key changes include:
Directive on adequate minimum wages
Directive 2022/2041/EU of the European Parliament and of the Council of 19 October 2022 on adequate minimum wages in the European Union - Member States are obliged to introduce provisions to ensure that minimum wages are commensurate with the cost of living, enabling workers to live in dignity.
Poland was obliged to transpose the standards contained in this directive by 15 November 2024. In order to implement the aforementioned directive in the Polish legal order, the following amendments were made Minimum Wage Act and on 01.01.2025 entered into force Act on collective bargaining and collective agreements.
Platform Work Directive
Directive 2024/1831/EU European Parliament and of the Council of 23 October 2024 on improving working conditions through platforms. Their aim is to ensure adequate labour rights and social protection for those working via digital platforms.
In Poland, work on the implementation of the legislation in this area is underway, but full implementation should take place by 2 December 2026.
6 Electronic Travel Authorisation for the UK (ETA)
From 2 April 2025 travelling to the UK will require you to have Electronic Travel Authorisation (ETA). The introduction of this system applies to non-UK nationals, including those from European Union countries. ETA is a modern system that aims to improve border controls and strengthen national security.
How do I obtain an Electronic Travel Authorisation?
To obtain an ETA, travellers must complete online application formby providing their personal details, destination and other necessary information. Once their application has been successfully verified, they will receive an electronic entry permit, which they will need to present at border checks.
The ETA system is simple, quick and gives travellers greater certainty about their entry status into the UK.
Who needs an ETA?
The obligation to have an ETA means that any person travelling to the United Kingdom (other than UK citizens) must apply before travelling. Although the application process is quick, it is advisable to apply for an ETA in advance to avoid unforeseen problems at check-in.
Summary: How to prepare for EU and UK legal changes in 2025?
Changes to EU and UK regulations in 2025 introduce new challenges, but also opportunities for businesses and citizens:
- Entrepreneurs must prepare to adapt to the stricter regulations of the climate protection, ESG reporting, SME VAT procedures, availability of products and services and changes in labour law.
- Travellers to the UK must remember to obtain Electronic Travel Authorisation (ETA) prior to departure.
Preparing for these changes will not only allow you to comply with new regulations, but also to take advantage of emerging opportunities for growth and innovation. It is worth starting now to adapt your strategies and processes to the upcoming regulatory requirements in the European Union and the UK.
The changes to European law in 2025 are a significant step towards sustainable development, equality and modernity in the areas of labour law, environmental protection and technology. The appropriate alignment of processes and strategies will be key to success in the coming years.
Dr. of legal sciences
Kinga Bąk
