Close Menu
    Latest Category
    • Finance
    • Tech
    • EU Law
    • Energy
    • About
    • Contact
    EUbusiness.com | EU news, business and politicsEUbusiness.com | EU news, business and politics
    Login
    • EU News
    • Focus
    • Guides
    • Press
    • Jobs
    • Events
    • Directory
    EUbusiness.com | EU news, business and politicsEUbusiness.com | EU news, business and politics
    Home » VAT rules simplified for Europe’s smaller businesses

    VAT rules simplified for Europe’s smaller businesses

    npsBy nps19 February 2020Updated:25 June 2024 Finance No Comments2 Mins Read
    — Filed under: Council of Ministers EU News Headline2
    Share
    Facebook Twitter LinkedIn Pinterest Email
    VAT rules simplified for Europe's smaller businesses

    Tax

    (BRUSSELS) – EU finance ministers adopted simplified VAT rules applicable to small businesses Tuesday, with a view to reducing administrative burdens and compliance costs and helping more efficient trade across borders.

    Businesses have VAT administrative obligations and act as VAT collectors. This generates compliance costs that are proportionately higher for small enterprises than for bigger businesses.

    The existing VAT system foresees that VAT exemption for small enterprises is only available to domestic players. The reform agreed by the EU Council will enable a similar VAT exemption to be applied to small enterprises established in other member states.

    The updated rules will also improve the design of the exemption, thereby contributing to reducing VAT compliant costs. It will also provide the opportunity to encourage voluntary compliance and therefore help reduce revenue losses due to non-compliance and VAT fraud.

    The text foresees that small enterprises will be able to qualify for simplified VAT compliance rules where their annual turnover remains below a threshold set by a Member State concerned, which cannot be higher than EUR 85,000.

    Under certain conditions, small enterprises from other member states, which do not exceed this threshold, will also be able to benefit from the simplified scheme, if their total annual turnover in the whole of the EU does not exceed EUR 100,000.

    The new rules will apply as of 1 January 2025.

    A second VAT reform, concerning the detection of tax fraud in cross-border e-commerce transactions, was also agreed at the meeting of finance ministers.

    The new rules will enable member states to collect, in a harmonised way, the records made electronically available by payment service providers, such as banks.

    In addition, a new central electronic system will be set up for the storage of the payment information and for the further processing of this information by national anti-fraud officials.

    Text on VAT rules for small enterprises adopted by the Council, 18 February 2020

    Economic and Financial Affairs Council, 18 February 2020, main results

    Add A Comment
    Leave A Reply Cancel Reply

    You must be logged in to post a comment.

    nps
    • Website

    Related Content

    Bulgaria euro - Photo © European Union 2025

    Bulgaria takes its place as 21st member of the eurozone

    Investment - Photo by Anna Tarazevich on Pexels

    EU agrees on shorter settlement cycle for securities trading

    Brussels to postpone market risk prudential requirements under Basel III by one more year

    Euro dollar - Photo by cottonbro studio on Pexels

    Euro, US dollar dominate extra-EU trade in 2024

    Mînzatu - Dombrovskis - Photo © European Union 2025

    Competitiveness and security the focus of EU’s ‘spring package’

    Euro ATM - Image by Peggy und Marco Lachmann-Anke from Pixabay

    Bulgaria cleared to join euro on 1 January 2026

    LATEST EU NEWS
    Euro - ECB-Photo by Mika Baumeister on Unsplash

    Euro continues to hold its ground – Euro currency news daily

    9 July 2025
    Chemical production nature clouds - Image by andreas N from Pixabay

    EU to set up Critical Chemical Alliance

    8 July 2025
    Bulgaria euro - Photo © European Union 2025

    Bulgaria takes its place as 21st member of the eurozone

    8 July 2025
    Cars CO2 emissions- Photo by Alexey Demidov on Pexels

    Brussels seeks views on CO2 emission standards for cars and vans, car labelling

    7 July 2025
    Farming soyabean - Image by Loren King from Pixabay

    Brussels authorises use of safe genetically modified soybean as food and animal feed

    4 July 2025

    Subscribe to EUbusiness Week

    Get the latest EU news

    CONTACT INFO

    • EUbusiness Ltd 117 High Street, Chesham Buckinghamshire, HP5 1DE United Kingdom
    • +44(0)20 8058 8232
    • service@eubusiness.com

    INFORMATION

    • About Us
    • Advertising
    • Contact Info

    Services

    • Privacy Policy
    • Terms
    • EU News

    SOCIAL MEDIA

    Facebook
    eubusiness.com © EUbusiness Ltd 2025

    Design and developed by : 

    Type above and press Enter to search. Press Esc to cancel.

    Sign In or Register

    Welcome Back!

    Login to your account below.

    Lost password?