Revenue eBrief No. 315/24

13 December 2024

Overview of EU VAT SME Scheme

Currently, Member States can set their national Value Added Tax (VAT) registration thresholds within European Union (EU) rules. Usually, businesses operating below these thresholds making domestic supplies of goods and services are not required to register and account for VAT. Information on the thresholds applicable in Ireland can be found in the related topics section.

Generally, where an Irish established trader makes supplies in another Member State, there is no de minimis threshold. They must immediately register and account for VAT in the Member State where the supply takes place. From 1 January 2025, the SME scheme will allow these small traders the option to avail of the thresholds in other Member States. If eligible, these businesses will not have to register for VAT when supplying goods and services there. 

In general, to be eligible to use this EU VAT SME scheme in another Member State, an Irish business must:

• be established for VAT purposes in Ireland only;
• not exceed the domestic turnover threshold(s) of the other Member State(s) where supplies are made;
• not exceed the Union turnover threshold of €100,000;
• be registered in Ireland to use the scheme (separate registration process);

  and      

file quarterly reports once registered.

An Irish business wishing to register to use the scheme in other Member States must make a formal application to Revenue in Ireland.

This scheme is optional. Irish businesses do not have to use it for supplies in other Member States. Normal VAT rules for businesses not making use of this scheme will continue to apply. 

Irish businesses currently operating the SME scheme in Ireland for their domestic transactions do not have to register for VAT. However, they can elect to do so. This will not change.

For queries relating to this scheme, please contact Revenue:

• Via MyEnquiriesMyEnquiries, selecting VSME (EU VAT SME Scheme)
• Via email on vsmehelp@revenue.ie