The EU Parliament’s economic and monetary affairs (ECON) committee has put forward amendments to the Commission’s proposal for simplification of VAT for SMEs in the EU, which forms part of the wider set of reforms moving towards creation of a single EU VAT area. The committee’s recommendations include creating an online portal for claiming exemption in other member states and bringing forward introduction of the scheme to 1 January 2020.
The European Commission published its proposal in January 2018 for SMEs with a turnover below €2m to qualify for simplified VAT registration and record keeping, together with a new exemption for companies with an overall EU-wide turnover below €100,000.
The ECON committee report, setting out amendments to the original proposal, has been published in the EU official journal. These amendments include:
setting both an upper limit (at EU level) and a lower limit (by member states) for the VAT exemption threshold;
dropping the proposed requirement for SMEs to submit annual VAT returns;
preventing member states from requiring exempt SMEs to submit VAT returns;
creating an online one-stop-shop allowing SMEs to register for the exemption across member states; and
implementing the scheme from 1 January 2020 (rather than 1 July 2022 in the original proposal).
The EU Parliament’s economic and monetary affairs (ECON) committee has put forward amendments to the Commission’s proposal for simplification of VAT for SMEs in the EU, which forms part of the wider set of reforms moving towards creation of a single EU VAT area. The committee’s recommendations include creating an online portal for claiming exemption in other member states and bringing forward introduction of the scheme to 1 January 2020.
The European Commission published its proposal in January 2018 for SMEs with a turnover below €2m to qualify for simplified VAT registration and record keeping, together with a new exemption for companies with an overall EU-wide turnover below €100,000.
The ECON committee report, setting out amendments to the original proposal, has been published in the EU official journal. These amendments include:
setting both an upper limit (at EU level) and a lower limit (by member states) for the VAT exemption threshold;
dropping the proposed requirement for SMEs to submit annual VAT returns;
preventing member states from requiring exempt SMEs to submit VAT returns;
creating an online one-stop-shop allowing SMEs to register for the exemption across member states; and
implementing the scheme from 1 January 2020 (rather than 1 July 2022 in the original proposal).
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