Monaco's New VAT Exemption Thresholds and Updates for 2025: Key Changes for Businesses

Monaco has recently introduced changes to its VAT exemption thresholds, effective 1 January 2025. Businesses offering goods, hotel accommodations, and restaurant services will now be exempt from VAT if their turnover in the previous year didn't exceed EUR 85,000, a reduction from EUR 91,900. For those providing other services, the threshold has been slightly increased.

If your business provides digital content or services internationally, there's also an update on how VAT applies. From January 2025, services like cultural or educational content provided to non-taxable persons outside of Monaco will be considered as supplied outside of Monaco, making them VAT-exempt.

Furthermore, if you run a hotel or provide similar accommodation services, take note that such services will no longer be VAT-exempt if offered for fewer than 30 nights and include extras like breakfast or cleaning. These will now be subject to a 10% VAT rate. There are also new rules for platforms facilitating sales of goods within Monaco, placing VAT responsibility on them under certain conditions.

For a full look at these changes, check out the official ordinance:
Sovereign Ordinance No. 10.832