- The EU Directive 2020/285 aims to simplify VAT obligations for small businesses
- It allows certain businesses with annual turnover below 85,000 euros to be exempt from VAT
- Spain has not yet implemented this Directive
- Small businesses and EU member states are affected by this Directive
- The Directive introduces simplified notification and identification obligations
- Each member state can set a national income threshold for businesses to qualify for the VAT franchise regime
- The Directive came into effect on March 2, 2020, and member states must implement it by December 31, 2024
- The benefits of exemption from VAT include reduced administrative burden and compliance costs
Source: audiconsultores-etlglobal.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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