Changes to the VAT Act – SME Scheme

Act XXXVIII of 2024 published on 17 December 2024 has introduced changes to the VAT Act implementing the changes to the EU VAT Directive (Dir 2006/112EC) introduced by Directive 2020/285  as regards the special scheme for small enterprises (See MIT News 20 February 2020). Further changes to the VAT Act in this regard are also introduced by:

Legal Notice 345 of 2024 – Value Added Tax Act (Amendment of Fifth Schedule) (Amendment No. 3) Regulations, 2024

Legal Notice 346 of 2024 – Value Added Tax Act (Amendment of Sixth Schedule) Regulations, 2024

Legal Notice 347 of 2024 – Value Added Tax Act (Amendment of Eleventh Schedule) Regulations, 2024

Legal Notice 348 of 2024 – Value Added Tax Act (Amendment of Twelfth Schedule) Regulations, 2024

Legal Notice 349 of 2024 – Value Added Tax Act (Amendment of Thirteenth Schedule) Regulations, 2024

Legal Notice 350 of 2024 – Value Added Tax Act (Amendment of Fourteenth Schedule) Regulations, 2024

Legal Notice 351 of 2024 – Value Added Tax (Declaration by Exempt Persons) (Repeal) Regulations, 2024

Legal Notice 352 of 2024 – Value Added Tax (Recapitulative Statement of Intra-Community Transactions) (Amendment) Regulations, 2024

Legal Notice 353 of 2024 – Value Added Tax (Tax Period) (Amendment) Regulations, 2024

The changes, which enter into effect on 1 January 2025, implement new rules for businesses which are eligible and have the option to be treated as a ‘Small Enterprise’ (Small Undertaking – Article 11 of the VAT Act) not only for domestic supplies but also those made in another EU Member State (provided that a certain threshold is not exceeded).