Up until December 31 2024, it has only been possible for small businesses to be exempt from VAT obligations in their country of establishment. Following the introduction of the cross-border SME scheme, starting January 1 2025, the EU now enables small enterprises to exempt themselves from charging Value-Added Tax (VAT) on goods and services across several member states. The SME scheme is optional and allows the business to:
- Not charge VAT on the sale of goods and services (VAT exemp…