{"id":6902,"date":"2024-12-26T13:31:40","date_gmt":"2024-12-26T11:31:40","guid":{"rendered":"https:\/\/nicola-bernard.de\/?p=6902"},"modified":"2024-12-26T13:31:40","modified_gmt":"2024-12-26T11:31:40","slug":"vat-rules-for-small-enterprises","status":"publish","type":"post","link":"https:\/\/nicola-bernard.de\/en\/vat-rules-for-small-enterprises\/","title":{"rendered":"VAT rules for small enterprises"},"content":{"rendered":"<p><strong>From 1 January 2025<\/strong>, the special VAT regime (the SME scheme) allows <strong>small enterprises<\/strong> to:<\/p>\n<ul>\n<li>sell goods and services <strong>without charging VAT<\/strong> to their customers (<strong>VAT exemption<\/strong>) and,<\/li>\n<li><strong>alleviate<\/strong> their VAT compliance <strong>obligations<\/strong>.<\/li>\n<\/ul>\n<p>Small enterprises choosing VAT exemption will <strong>lose the right to deduct VAT<\/strong> on goods and services used to make exempt supplies.<\/p>\n<p><strong>Who can benefit?<\/strong><\/p>\n<p>Any <strong>small enterprise<\/strong> with a <strong>total annual turnover of no more than EUR\u00a0100\u00a0000<\/strong> (or the equivalent in national currency) <strong>in all Member States\u00a0in <\/strong>the current and previous calendar year is eligible for VAT exemption in its Member State of establishment (MSEST) and\/or in other Member State(s) under the cross-border SME scheme.<\/p>\n<p>This is applicable only if the Member State concerned has implemented the scheme in its national legislation.<\/p>\n<p>The SME scheme is <strong>optional<\/strong>.<\/p>\n<p><strong>Non-EU small enterprises cannot apply the SME scheme<\/strong>. In the context of the SME scheme, small enterprises established in the United Kingdom, including Northern Ireland, are non-EU small enterprises.<\/p>\n<p><strong>What\u2019s new?<\/strong><\/p>\n<p><strong>New maximum for national annual threshold<\/strong><\/p>\n<p>The maximum <strong>national annual threshold<\/strong> set by Member States under which small enterprises can VAT exempt their supplies of goods and services under the SME scheme (domestic and cross-border) is <strong>EUR\u00a085\u00a0000<\/strong> (or the equivalent in national currency).<\/p>\n<p>Member States have the possibility to set more than one national annual threshold. These are called \u2018<strong>sectoral thresholds<\/strong>\u2019. In case a small enterprise can benefit from more than one sectoral threshold, the tax authorities will, based on its activities, inform the small enterprise about the threshold to use since only one threshold can be applied per taxable person.<\/p>\n<p><strong>Cross-Border Application<\/strong><\/p>\n<p>Small enterprises established in another Member State than where VAT is due can <strong>VAT exempt their supplies<\/strong> (cross-border), in the same way that small enterprises established in that Member State already can for domestic transactions.<\/p>\n<p>This will help place all small enterprises on an equal footing, whether they are based in that Member State or not.<\/p>\n<p><strong>Union annual threshold<\/strong><\/p>\n<p>Small enterprises <strong>with a total annual turnover in the 27 Member States not exceeding EUR\u00a0100\u00a0000<\/strong> are eligible to apply the cross-border SME scheme.<\/p>\n<p>You can check your eligibility on the <a href=\"https:\/\/sme-vat-rules.ec.europa.eu\/simulator_en\">simulator<\/a>.<\/p>\n<p><strong>Simplified compliance<\/strong><\/p>\n<ul>\n<li><strong>Single registration<\/strong>: small enterprises will only need to register for the purpose of the SME scheme once in the MSEST. MSEST will grant a single identification \u2018<strong>EX number<\/strong>\u2019 that will be used in all Member States where the small enterprise benefits from the VAT exemption.<\/li>\n<li><strong>Single quarterly report<\/strong>: periodical VAT returns are replaced by <strong>one single quarterly report<\/strong> in the MSEST to inform about the turnover of the small enterprise in all Member States.<\/li>\n<li><strong>Simplified invoices<\/strong><\/li>\n<\/ul>\n<p><strong>Which goods and services are eligible for VAT exemption? <\/strong><\/p>\n<p>All supplies of goods and services are eligible, with some <a href=\"https:\/\/sme-vat-rules.ec.europa.eu\/index_en#paragraph-331-7-title\" target=\"_blank\" rel=\"noopener\">exceptions<\/a>.<\/p>\n<p><strong>What are the conditions for applying the SME scheme?<\/strong><\/p>\n<p>The conditions depend on whether you apply the <a href=\"https:\/\/sme-vat-rules.ec.europa.eu\/sme-scheme\/domestic-sme-scheme_en\" target=\"_blank\" rel=\"noopener\">domestic SME scheme<\/a> \u00a0only or the <a href=\"https:\/\/sme-vat-rules.ec.europa.eu\/sme-scheme\/cross-border-sme-scheme_en\" target=\"_blank\" rel=\"noopener\">cross-border SME scheme<\/a>.<\/p>\n<p><strong>Rules applicable as of 1 January 2025<\/strong><\/p>\n<p>You already apply the domestic SME scheme in your Member State of establishment and may want to continue so. In this case, domestic rules will apply.<\/p>\n<p>&nbsp;<\/p>\n<p><strong><a href=\"khttps:\/\/sme-vat-rules.ec.europa.eu\/index_en?prefLang=de\">VAT rules for small enterprises\u00a0<\/a><\/strong><\/p>\n<p>Source: Newsletter DIHK (Germany)<\/p>\n","protected":false},"excerpt":{"rendered":"<p>From 1 January 2025, the special VAT regime (the SME [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":6899,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-6902","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-allgemein-en"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>VAT rules for small enterprises - Nicola Bernard<\/title>\n<meta name=\"description\" content=\"#VAT_Scheme_SME #VAT_SME_Scheme_January_2025 #VAT_rules_for_small_enterprises\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/nicola-bernard.de\/en\/vat-rules-for-small-enterprises\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"VAT rules for small enterprises - Nicola Bernard\" \/>\n<meta property=\"og:description\" content=\"#VAT_Scheme_SME #VAT_SME_Scheme_January_2025 #VAT_rules_for_small_enterprises\" \/>\n<meta property=\"og:url\" content=\"https:\/\/nicola-bernard.de\/en\/vat-rules-for-small-enterprises\/\" \/>\n<meta property=\"og:site_name\" content=\"Nicola Bernard\" \/>\n<meta property=\"article:published_time\" content=\"2024-12-26T11:31:40+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/nicola-bernard.de\/wp-content\/uploads\/2024\/12\/pexels-Wissen-polina-zimmerman-3747505-scaled.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1707\" \/>\n\t<meta property=\"og:image:height\" content=\"2560\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"nicola.bernard\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"nicola.bernard\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/nicola-bernard.de\/en\/vat-rules-for-small-enterprises\/\",\"url\":\"https:\/\/nicola-bernard.de\/en\/vat-rules-for-small-enterprises\/\",\"name\":\"VAT rules for small enterprises - Nicola Bernard\",\"isPartOf\":{\"@id\":\"https:\/\/nicola-bernard.de\/en\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/nicola-bernard.de\/en\/vat-rules-for-small-enterprises\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/nicola-bernard.de\/en\/vat-rules-for-small-enterprises\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/nicola-bernard.de\/wp-content\/uploads\/2024\/12\/pexels-Wissen-polina-zimmerman-3747505-scaled.jpg\",\"datePublished\":\"2024-12-26T11:31:40+00:00\",\"author\":{\"@id\":\"https:\/\/nicola-bernard.de\/en\/#\/schema\/person\/7a09693188c7e9880d798b5b412350a4\"},\"description\":\"#VAT_Scheme_SME #VAT_SME_Scheme_January_2025 #VAT_rules_for_small_enterprises\",\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/nicola-bernard.de\/en\/vat-rules-for-small-enterprises\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/nicola-bernard.de\/en\/vat-rules-for-small-enterprises\/#primaryimage\",\"url\":\"https:\/\/nicola-bernard.de\/wp-content\/uploads\/2024\/12\/pexels-Wissen-polina-zimmerman-3747505-scaled.jpg\",\"contentUrl\":\"https:\/\/nicola-bernard.de\/wp-content\/uploads\/2024\/12\/pexels-Wissen-polina-zimmerman-3747505-scaled.jpg\",\"width\":1707,\"height\":2560},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/nicola-bernard.de\/en\/#website\",\"url\":\"https:\/\/nicola-bernard.de\/en\/\",\"name\":\"Nicola Bernard\",\"description\":\"Serviceb\u00fcro f. 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