Ireland: Updates on EU VAT Regime for SMEs
The Irish Revenue Commissioners issued Revenue eBrief No. 315/24, outlining new guidelines for small and medium-sized enterprises (SMEs) under the EU VAT regime. These updates clarify certain VAT registration and reporting requirements for Irish SMEs conducting business within the EU.
Key points from the eBrief include:
- VAT Registration Thresholds
Starting January 1, 2025, Irish SMEs that supply goods or services in another EU Member State can choose to apply the VAT registration threshold of that Member State, provided their annual turnover does not exceed the local thresholds. This offers greater flexibility for SMEs operating across borders within the EU. - Eligibility and Filing Requirements
In addition to meeting the turnover criteria, SMEs will need to comply with certain registration requirements. They must also submit quarterly reports for VAT purposes in the relevant Member State. -
Domestic SME VAT Regime
Irish businesses already benefiting from the SME VAT regime for domestic transactions in Ireland have the option to register for VAT under the new regime but are not required to do so.
Source: revenue.ie
