The objective of the SME package is to simplify cross-border VAT settlements for small and medium-sized enterprises (SMEs) operating in the European Union (EU). Currently, SMEs face burdensome VAT compliance requirements when conducting business in multiple EU countries. Directive 2020/285 aims to reduce costs and simplify VAT formalities by introducing the possibility of subjective exemption from VAT for small businesses established in countries other than where VAT is due. The package sets turnover limits for VAT exemption, both at the national and EU level. The changes may impact large companies by requiring adjustments to their accounting systems. The implementation of the SME package in Poland is expected to proceed as planned.
Source MDDP
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