- The new cross-border VAT exemption regime allows small businesses in the EU not to charge or deduct VAT and simplifies VAT compliance if their annual turnover does not exceed €85,000 (or €100,000 EU-wide for cross-border activities).
- From January 1, 2025, the regime applies both domestically and cross-border, provided specific turnover thresholds are met in each Member State.
- Italy implemented this regime through Legislative Decree no. 180/2024, allowing both Italian and other EU-established businesses to benefit from the exemption if they meet the criteria.
- The regime aims to harmonize VAT exemption rules for small businesses across the EU and reduce administrative burdens.
Source: blog.pwc-tls.it
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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