New SME Procedure – Greater Opportunities for Small and Medium-Sized Enterprises in the EU!
Starting from January 1, 2025, the special SME procedure will allow small and medium-sized enterprises to benefit from VAT exemptions in other EU member states.
A key advantage of the SME procedure is that it simplifies business operations for SMEs across the EU by eliminating the need for foreign VAT registration.
Eligibility for the SME procedure requires that the company’s turnover does not exceed the following limits:
- The VAT exemption threshold applicable in the respective EU country (each member state sets its own limit, not exceeding €85,000).
- The general EU-wide threshold of €100,000 (this applies to the total value of goods and services supplied within the EU, including sales in Poland).
Additionally, businesses wishing to benefit from the VAT exemption in other EU countries must:
- Submit an electronic notification to the Head of the Second Tax Office Warsaw-Śródmieście. After verification of eligibility in the relevant EU country, they will receive a unique EX identification number.
- File a quarterly report on turnover achieved in Poland and other EU countries.
Are you operating within the EU, considering the SME procedure, and need support? Contact Anna Rejman from Thedy & Partners!