VATupdate

Share this post on

Commission welcomes political agreement to simplify and strengthen the carbon border adjustment mechanism

The European Commission welcomes the provisional political agreement reached between the European Parliament and the Council today on Commission proposal to simplify and strengthen the EU’s carbon border adjustment mechanism (CBAM).

On 26 February 2025, the Commission proposed simplifications to the CBAM regulation to reduce administrative burdens for businesses, while maintaining the functionality of the CBAM measure. The key aspect of the proposal is a new exemption threshold of 50 tons for CBAM goods. This means that companies which do not exceed a single mass-based threshold set at a level of 50 tonnes of imported goods per importer per year, are exempt from CBAM obligations.

The proposed measure will therefore mostly apply to SMEs and individuals, which import small or negligible quantities of goods covered by the CBAM regulation.

As a deliverable of the Clean Industrial Deal, it is an important contribution to boost EU’s competitiveness and unlock our full economic potential and investment capacity.

You will find more information in our press release

Sponsors:

Pincvision
VATIT Compliance

Advertisements:

  • vatcomsult
  • Pincvision