Monaco VAT Law Changes 2025: Key Updates for Businesses

The Monaco VAT regulatory framework changed at the beginning of 2025. These include changes in the VAT threshold for supplies of goods and services and a special threshold for authors of intellectual works and performing artists.

In addition to these threshold changes, Amendments to VAT law brought additional changes affecting short-term accommodation rentals and place of supply for services that include streaming and virtual events.

Impact on Taxable Persons

The most notable changes are the VAT thresholds for supplying goods, services, and authors of intellectual works and performing artists. From January 1, the VAT threshold for the supply of goods is EUR 85,000; for services other than accommodation services and services consumed on site, EUR 37,500; and for authors of intellectual works and performing artists, EUR 50,000.

Taxable persons whose turnover exceeds this year's threshold must register for VAT the following year. However, if the turnover exceeds the threshold by 10% or more in the current year, taxable persons will be required to register for VAT this year.

Mocano amended rules relating to the place of supply for services and ancillary services related to streamed or otherwise made virtually available events to align with the EU-wide rules on the palace supply. Under the new rules, the place of supply is where the consumer permanently or usually resides.

Taxable persons providing short-term accommodation rental for less than 31 nights, such as hotels or similar establishments, must apply a 10% VAT rate for such transactions if they provide at least three of the following services: breakfast, regular cleaning during the stay, household linen like towels, sheets, etc., and receptions services, which may include staff or desk available for guests.

Conclusion

The changes represent a recalibration of thresholds and sector-specific Monaco VAT rules and regulations, where one of the main characteristics is the alignment with EU VAT principles. These changes are significant for taxable persons who should meticulously monitor their turnover and proactively ensure compliance with updated legislation.

Moreover, taxable persons engaged in the supply of streamed and virtual services should establish policies and mechanisms to properly track where their consumers come from and where they reside so that they can apply VAT rates.

Source: Sovereign Ordinance No. 10,832