New EU-wide VAT measures set to take effect from 1 January 2025, in three bullet points:
- EU-Wide VAT Simplification Measures:
- A package of measures aimed at simplifying VAT compliance for small and medium enterprises (SMEs) will allow EU Member States to set their VAT registration thresholds at a turnover value of up to €85,000 per annum.
- Increased VAT Registration Thresholds in Ireland:
- In Ireland, the VAT registration threshold will increase from €80,000 to €85,000 for businesses primarily engaged in the supply of goods.
- For businesses primarily engaged in the supply of services, the threshold will increase from €40,000 to €42,500.
- Exceptions to the Thresholds:
- There will continue to be a “nil” turnover threshold for businesses receiving taxable services from abroad subject to reverse charge VAT and for non-Irish established traders making taxable supplies of goods or services in Ireland, who must account for Irish VAT.
Source KPMG
See also
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