Overview
- The reduction of the VAT exemption threshold for small businesses, originally set to take effect on March 1, has been postponed until June 1, 2025.
- The measure proposed lowering the threshold to €25,000 in annual revenue, down from €37,500 for services and €85,000 for goods sales.
- The government cited the need for further consultation with stakeholders and parliamentarians to address widespread concerns from small business owners and professional organizations.
- Critics argue the reform would harm the competitiveness and financial stability of microentrepreneurs, while the government estimated it could generate €700 million in revenue this year.
- Adjustments to the measure, potentially including sector-specific thresholds, are being considered as part of ongoing discussions.