- Legal Protection and Rights: Taxpayers can rely on the Charter of Fundamental Rights of the EU to enforce their rights under the SME scheme, including the right to an effective remedy and a fair trial.
- Legal Redress: Taxpayers denied access to or excluded from the SME scheme must seek legal redress with the entity that issued the decision, depending on whether the issue is related to Union turnover thresholds or domestic conditions.
- Member State Responsibilities: Member States must inform taxpayers about the reasons for refusal or exclusion from the SME scheme and where to seek legal redress.
- Establishment Criteria: For a taxable person to be regarded as established in a Member State under the SME scheme, their central administration must be in that Member State. Fixed establishments alone do not qualify.
- Exemption Conditions: Taxable persons can benefit from exemptions in Member States where they have fixed establishments, provided they meet specific criteria. Non-EU established persons cannot benefit from these exemptions.
- Interaction with Other Schemes: The SME scheme can coexist with the One-Stop-Shop (OSS) Union scheme, allowing taxable persons to apply exemptions in their Member State of establishment while being registered for OSS for other supplies.
- Thresholds and Turnover Calculation: Domestic and Union thresholds determine eligibility for exemptions. Member States must ensure clear criteria for applying multiple thresholds and calculate turnover accurately.
- Prior Notification and Reporting: Taxable persons must submit prior notifications and quarterly reports to benefit from cross-border exemptions. Corrections to these reports must be made promptly to ensure accuracy.
- Non-Compliance and Proportionality: Member States may impose VAT obligations on non-compliant taxable persons, but measures must be proportionate, considering the principle of proportionality.
- Cessation and Deactivation: Exceeding thresholds or ceasing activities leads to exclusion from exemptions and deactivation of EX numbers. Member States must verify cessation of activities before deactivating EX numbers.
Source ec.europa.eu
See also
