- The EU’s SME VAT scheme is undergoing significant amendments set to take effect on January 1, 2025
- Changes include a standardized maximum threshold of €85,000 and eligibility for SMEs operating across borders
- Businesses qualifying for the scheme may choose not to charge VAT in their home country but must collect VAT in other member states
- The scheme may impact larger enterprises and non-EU entities, affecting input tax calculations and accounting systems
- The classification of small businesses without a VAT identification number could lead to complexities in determining their status as businesses or consumers
Source: taxually.com
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.
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