Council of the European Union 18 February 2020, Council Directive (EU) 2020/285 of 18 February 2020 amending Directive 2006/112/EC on the common system of value added tax as regards the special scheme for small enterprises and Regulation (EU) No 904/2010 as regards the administrative cooperation and exchange of information for the purpose of monitoring the correct application of the special scheme for small enterprises

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Council Directive (EU) 2020/285 amends Directive 2006/112/EC and Regulation (EU) No 904/2010 to modernize the VAT special scheme for small enterprises by reducing administrative burdens and facilitating cross-border trade. Key provisions establish a maximum national exemption threshold of EUR 85,000 and a Union annual turnover threshold of EUR 100,000, allowing non-established taxable persons to benefit from exemptions through a centralized notification system in their Member State of establishment. The Directive mandates simplified reporting obligations and enhanced administrative cooperation between Member States, with transposition required by December 31, 2024, for application starting January 1, 2025.AI