- Introduction to the Domestic SME Scheme: Effective from January 2025, the EU VAT SME Scheme allows qualifying Irish traders with turnover below specific thresholds to operate exempt from VAT and without registration. This scheme aims to reduce administrative burdens for small and medium enterprises (SMEs).
- Turnover Thresholds and Exemptions: Traders established in Ireland must adhere to defined turnover thresholds—€42,500 for services and €85,000 for goods—to qualify for VAT exemption. Certain transactions, such as acquisitions from abroad or sales of capital assets, are excluded from turnover calculations.
- Registration and Compliance: Qualifying SMEs automatically benefit from the domestic SME scheme without needing to register or report VAT. However, if their turnover exceeds the thresholds, they must register for VAT. The scheme also allows for voluntary exit if a trader chooses to register for VAT.
Source Revenue.ie
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