Ireland Revenue Guidelines for Cross-border EU VAT SME Scheme

June 9, 2025

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The Irish Revenue, specifically Tax and Customs, published Guidelines for the Cross-border Operation of the EU VAT SME Scheme (VSME Guidelines), effective from January 1, 2025, in alignment with the EU’s new VAT rules for small businesses. The VSME Guidelines provide all the relevant information and rules on who can apply for the SME scheme, how to register, and the obligations of registered SMEs.

Key VAT Rules for SMEs

As explained in the guidelines, Irish taxable persons may benefit from the SME scheme in another EU country if they meet two main criteria. The first one is that their total annual turnover across the entire EU, the Union turnover, must remain below the EU-wide EUR 100,000 threshold in both the current and previous calendar years. Secondly, the turnover must stay below the national threshold of the EU country where the taxable persons intend to apply the scheme, for both the current and previous years.

When calculating the annual turnover, taxable persons must include amounts from the supplies of taxable goods and services, supplies of immovable goods, specific financial transactions, and insurance and reinsurance services, exclusive of VAT.

Those who meet the defined criteria may apply for the VSME scheme online through Revenue’s Online Service (ROS) platform. To complete the registration, taxable persons must confirm that they are established in Ireland and provide a date from which they want to register for the SME scheme. Importantly, there is no possibility to apply for backdated registration.

Once the registration is completed, taxable persons must submit a quarterly report of turnover through ROS for supplies made in all EU countries in that calendar quarter, including turnover amounts in EU countries where the taxable person does not apply for the SME scheme.

Conclusion

Taxable persons established in Ireland who wish to benefit from the EU VAT SME scheme should carefully examine the provided information in the VSME Guidelines before making a final decision on whether to apply for and register for the scheme. Nevertheless, taxable persons may leave the EU SME scheme voluntarily if they no longer find it useful for their business activities and operations.

Source: Revenue, VATabout

What is the EU VAT SME Scheme and who can apply?

The EU VAT SME Scheme allows small businesses in Ireland to apply for VAT exemptions in other EU countries. Businesses with an annual turnover below EUR 100,000 across the EU can apply.

What are the eligibility criteria for the EU VAT SME Scheme?

To be eligible, businesses must have an EU-wide turnover below EUR 100,000 in both the current and previous years, and the turnover must also stay below the national threshold in the country where they apply.

How can businesses register for the EU VAT SME Scheme in Ireland?

Businesses can register for the scheme through Revenue's Online Service (ROS), confirming their establishment in Ireland and the desired registration date.

What turnover is included when calculating eligibility for the SME scheme?

Eligible turnover includes taxable goods and services, immovable goods, specific financial transactions, and insurance and reinsurance services, excluding VAT.

How frequently do businesses need to report turnover under the EU VAT SME Scheme?

Registered businesses must submit a quarterly report through ROS, detailing turnover for all supplies made in the EU during the calendar quarter.

Can businesses leave the EU VAT SME Scheme once they are registered?

Yes, businesses can voluntarily leave the scheme if they no longer find it beneficial for their operations.

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