Simplified VAT rules for SMES adopted
On 18 February 2020 the Council adopted simplified VAT rules applicable to SMEs.
The rules are intended to reduce the administrative burden and compliance costs for small businesses and to enable them to trade cross-border more efficiently.
The main change is the extension of the exemption for ‘small undertakings’, which currently only applies to traders which operate domestically, to traders who operate cross-border.
Member States are required to transpose the new rules by 31 December 2024 and they will apply with effect from 1 January 2025.