The EU Parliament’s economic and monetary affairs (ECON) committee has provided 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 the creation of a single EU VAT area.
The European Commission published its proposal in January 2018 for SMEs, with turnover below €2m, to be eligible for simplified VAT registration and record keeping, together with a new exemption for companies with an overall EU-wide turnover below €100,000.
On 16 July 2018, the ECON committee report, setting out amendments to the Commission’s original proposals, was published.
ECON’s amendments include:
• setting both an upper limit (at EU level) and a lower limit (at member state level) for the VAT exemption threshold
• removing the proposed requirement that SMEs submit annual VAT returns
• preventing member states from requiring exempt SMEs to submit VAT returns
• creating an EU-wide online portal allowing SMEs to register for the exemption across all member states, and
• bringing forward the proposed date of implementation to 1 January 2020 (from 1 July 2022).
A copy of the ECON’s committee’s report can be viewed here.