- Revenue eBrief No. 315/24 issued on 13 December 2024 discusses the EU VAT SME Scheme
- Member States set their own VAT registration thresholds under EU rules
- Businesses below these thresholds in their home countries usually do not need to register for VAT
- Irish traders must register for VAT in other Member States if they make supplies there, with no minimum threshold
- Starting 1 January 2025, the SME scheme will allow small traders to use the VAT thresholds of other Member States, avoiding registration for VAT there if eligible
- Eligibility for the EU VAT SME scheme requires
- VAT establishment in Ireland only
- Not exceeding the domestic turnover thresholds of the Member State where supplies are made
- Not exceeding a Union turnover threshold of 100,000 euros
- Registration in Ireland to use the scheme
- Quarterly reporting once registered
- Irish businesses must apply formally to Revenue in Ireland to use the scheme in other Member States
- The scheme is optional and normal VAT rules apply to businesses not using the scheme
- Irish businesses using the SME scheme domestically do not need to register for VAT but can choose to do so
Source: revenue.ie
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.
