- EU SME VAT scheme aims to simplify VAT compliance for small and medium-sized enterprises
- Eligible SMEs can be exempt from VAT if their annual turnover stays below a set threshold
- Businesses in the scheme do not need to charge VAT on sales or file VAT returns
- Businesses cannot reclaim VAT paid on purchases under the scheme
- Starting from 2025, SMEs established in other Member States can benefit from the VAT exemption
- Conditions for eligibility include total turnover in the EU not exceeding EUR 100,000
- Member States can grant tax exemptions to companies from other EU countries
- Member States have flexibility to establish different thresholds for VAT exemption
- Businesses must notify their home country in advance to benefit from the scheme abroad
- Many EU countries are adapting their regulations to align with the new directive for SME VAT schemes.
Source: marosavat.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
