EU Member States have agreed to extend VAT registration thresholds for non-resident taxpayers. This new VAT scheme for small businesses will simplify rules and reduce compliance costs. The scheme will apply from 1 January 2025. Member States will be able to exempt small businesses with an annual turnover not exceeding €85,000. The exemption will also apply to small enterprises established in other Member States, as long as their turnover in that Member State is below the national threshold and their total annual turnover in the EU is below €100,000. This will create a level playing field for businesses and reduce VAT compliance costs for SMEs by up to 18% per year.
Source Marcus Ward
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