2025 SME Directive: Impact on Large EU Businesses and VAT Settlement Changes

• The SME Directive has been signed into law in Poland, affecting VAT settlements for small and medium-sized enterprises across the EU
• Starting in 2025, companies can opt into the SME VAT exemption scheme through their home country’s tax authority if they meet the EU-wide annual threshold of EUR 100,000
• Approximately 6,000 companies in Poland could benefit from this scheme by deregistering for VAT in Poland and settling differently with Polish contractors
• Under the SME scheme, invoices issued in Poland will not include VAT and will only be issued upon request
• Polish recipients of such invoices need to adjust how they process these invoices, which will now include an individual identification number and a legal reference instead of VAT
• The SME status of a contractor must be verified through the SME-on-the-Web application to determine if Intra-Community Acquisitions need to be declared in Poland
• The implementation of the SME Directive may lead to changes in invoicing practices and how intra-community supplies are documented and taxed

Source: mddp.pl

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.

---

---