Revenue eBrief No. 113/25
04 June 2025
Overview of EU VAT SME Scheme
Guidelines for Cross-border Operation of EU VAT SME Scheme (VSME) is a new Tax and Duty Manual that has been created, effective from 1 January 2025, on foot of S.I. No 69/2025 – European Union (Value Added Tax) Regulations 2025.
This gives effect to Council Directive 2006/112/EC of 28 November 2006 as amended by Council Directive (EU) 2020/285 of 18 February 2020.
The EU VAT SME Scheme will allow small enterprises to sell goods and services without charging VAT to their EU customers (VAT exemption) and alleviate their VAT compliance obligations. SME’s choosing the EU VAT SME Scheme will lose the right to deduct VAT on goods and services used to make exempt supplies. To be eligible to use this EU VAT SME scheme in another Member State, an Irish business must not exceed the Union Annual Threshold of €100,000.