- Overview of the SME Scheme: In Ireland, the SME scheme allows small enterprises to opt for VAT exemptions, with specific turnover thresholds set for various types of transactions. Key thresholds effective from January 1, 2025, include €42,500 for service providers and €85,000 for those supplying both goods and services, with no VAT reporting obligations for domestic SMEs.
- Cross-Border and Simplified VAT Obligations: The cross-border SME scheme simplifies VAT compliance by allowing businesses to notify a single Member State of their VAT obligations rather than registering in each state. This includes submitting a single quarterly report in the Member State of establishment and exemptions from issuing invoices for certain supplies.
- Transitional and Quarantine Periods: Ireland does not impose a transitional period for exceeding national thresholds but does have a quarantine period of one calendar year if the Union or national annual thresholds are exceeded. There are no penalties for voluntarily leaving the SME scheme, and appeals regarding the scheme are directed to the appropriate Member State of Establishment or Exemption.
Source ec.europa.eu
