Revenue eBrief No. 153/25
05 August 2025
EU VAT SME Scheme - Domestic Layer
A new Tax and Duty Manual for the EU VAT SME Scheme – Domestic Layer is now available on the Revenue website.
The EU VAT SME (Small and Medium Enterprise) scheme came into effect in January 2025. It aims to reduce the administrative burden and compliance cost on SMEs, and to encourage them to undertake cross-border trade. The scheme allows qualifying traders established in participating Member States to avail of VAT exemption in their own Member State and in all participating Member States where they supply goods and services, thereby avoiding the need to register for VAT there.
The scheme has both a Domestic and Cross-border element in each participating Member State. This TDM deals with the Domestic element of the scheme in Ireland.
The TDM provides guidance on availing of the domestic scheme. It sets out Ireland's turnover thresholds for VAT registration, and includes guidance on calculating turnover for the purposes of the scheme.