- European Commission opens infringement procedures for failing to transpose Directive on special VAT scheme for small enterprises
- Letters of formal notice sent to Bulgaria, Ireland, Greece, Spain, Cyprus, Lithuania, Portugal, and Romania
- SME exemption in EU VAT Directive allows small businesses to be VAT-free if annual turnover is below threshold
- Small businesses exempt from certain VAT obligations but cannot claim back VAT on inputs
- New rules set maximum turnover threshold at EUR85,000 for all member states
- Small businesses not established in a member state can benefit from that state’s exemption scheme if turnover is below threshold
- Directive was to be transposed into domestic law by December 31, 2024
- Member states have two months to respond before Commission may escalate infringement proceedings
Source: answerconnect.cch.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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