- EU-wide VAT simplification for small businesses: Directive (EU) 2020/285, effective January 1, 2025, harmonizes exemption thresholds, reduces administrative burdens, and introduces a single small-business VAT exemption recognized across multiple Member States.
- France’s implementation: Under the 2024 Finance Law and Decree No. 2024-1195, updated thresholds apply in 2025 (€85,000 for goods/accommodation, €37,500 for services, etc.), with an EU-wide turnover ceiling of €100,000. The proposed €25,000 uniform threshold is suspended until end of 2025.
- Key changes and impacts: Immediate VAT liability upon exceeding thresholds, eligibility extended to foreign EU businesses, mandatory notifications for cross-border use, and overall benefits include simplified compliance and reduced costs—though businesses must monitor EU-wide turnover and invoice wording.
Source TRA
