- The new special VAT scheme for EU SMEs will be modified effective January 1, 2025
- The main change is the possibility of applying VAT exemption to cross-border transactions
- The scheme introduces an optional two-level VAT system for SMEs
- SMEs covered by the scheme cannot deduct input VAT on goods or services used in VAT-exempt activities
- Definition of an SME is based on turnovers and thresholds locally and at an EU level
- Compliance with the scheme includes simplifications for domestic operations and complications for cross-border activities
Source: internationaltaxreview.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.
