New VAT Special Scheme for SMEs Reduces Administrative Burden from 2025

• A new special VAT scheme for small businesses is being introduced to reduce administrative burdens
• Starting January 1, 2025, small businesses in the EU with annual turnover not exceeding 100,000 euros can benefit from VAT exemption in multiple EU states
• Each EU member state can set its own national limits for VAT exemption eligibility
• The legislative basis for this adjustment includes EU Council Directive 2020/285, EU Commission Regulation 2021/2007, and EU Council Directive 2022/542, all transposed into Slovak law by amendment of the VAT Act No. 222/2004
• Small businesses must declare their intention to apply the special scheme in specific EU member states through the state where they are headquartered or have a permanent residence or business location
• Tax administrators will assign a unique identification number with an EX suffix to each small business and notify the member states where the business will have the ability to supply goods and services exempt from VAT
• The application of this special VAT scheme will reduce administrative burdens and increase the comfort of small businesses in fulfilling their reporting obligations through a single submission detailing all EU-wide turnover
• The tax administrator will automatically facilitate the exchange of this information with other EU member states
• The Financial Administration continues to enhance the business environment in Slovakia and the EU, moving towards a harmonized and digitally interconnected VAT system for all small businesses across the European Union

Source: financnasprava.sk

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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