Revenue overview of EU VAT SME Scheme

Revenue has published an overview of the EU VAT SME Scheme. Current provisions allow Member States to set their national VAT registration thresholds within EU rules whereby, in general, a business operating below these thresholds and making domestic supplies of goods and services is not required to register and account for VAT.

However, no de minimis threshold applies where an Irish business makes supplies in another Member State. They must immediately register and account for VAT in the Member State where the supply takes place. From 1 January 2025, the EU VAT SME Scheme will allow eligible small traders the option to avail of thresholds in the other Member State and not register for VAT when supplying goods and services there. 

The scheme is optional and Irish businesses wishing to register to use the scheme in other Member States must make a formal application to Revenue. The eligibility requirements include that the business must:

• be established for VAT purposes in Ireland only;
• not exceed the domestic turnover threshold(s) of the other Member State(s) where supplies are made;
• not exceed the Union turnover threshold of €100,000;
• be registered in Ireland to use the scheme (separate registration process); and      
• file quarterly reports once registered.

Further information in available in eBrief No. 315/24.