The new VAT scheme for SMEs entered into force on 1 January 2025.
This initiative introduces a simplified VAT framework for small businesses across the EU, helping to reduce compliance burdens and open up new cross-border opportunities.
Key benefits of the VAT scheme for SMEs:
- VAT exemption for eligible SMEs: businesses can sell goods and services free of VAT, which simplifies the complexity of work.
- Simplified registration: a single registration procedure in the home Member State allows businesses to benefit from VAT exemptions in other Member States.
- Reduced scope of compliance obligations: SMEs can benefit from consolidated quarterly reporting and simplified accounts, depending on the Member State.
Eligibility and flexibility:
The scheme applies to small businesses based in the EU with a total annual turnover in all 27 Member States not exceeding EUR 100,000. Companies must also meet the national thresholds set by the Member States in which they intend to apply the exemption.
Non-EU companies are not eligible for the scheme. Participation in the scheme is voluntary and SMEs can adapt it to their needs.
Tools and support for SMEs:
To support businesses in the transition to the new programme, the European Commission has launched VAT SME Portal with the following resources:
- Country-specific details of national thresholds and implementation.
- Information to help companies determine whether they are eligible.
- Centralised database for validating EX numbers issued to SMEs under the programme.
Our goal is your success.
Together, we shape sustainable solutions and create the foundations for growth, competitiveness and innovation.
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