- Up until December 31, 2024, small businesses could be exempt from VAT obligations in their country of establishment
- From January 1, 2025, the SME scheme allows small enterprises to sell goods and services without charging VAT to customers
- Small enterprises can alleviate their VAT compliance obligations under the SME scheme
- Small enterprises with a total annual turnover of no more than EUR 100,000 are eligible for the VAT exemption
- The SME scheme is optional and non-EU small enterprises cannot apply
- New maximum national annual threshold for VAT exemption is EUR 85,000
- Small enterprises can apply the cross-border SME scheme if their total annual turnover does not exceed EUR 100,000 in all 27 Member States
- Simplified compliance includes single registration, single quarterly report, and simplified invoices
- All supplies of goods and services are eligible for VAT exemption under the SME scheme
Source: sme-vat-rules.ec.europa.eu
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.
