VIDA 2025

For EU enterprises, the 2025 SME Special Scheme lowers the burden of international compliance by introducing a pan-EU €100,000 VAT registration threshold.

With the implementation of a new, optional €100,000 EU VAT registration threshold on January 1, 2025, enterprises with EU residents are able to sell in other EU states by claiming the sales as exempt through a new kind of "EX" VAT registration. Consequently, minor transactions in other EU nations do not require registration.

Two thresholds have been included in the modified SME Special Scheme: a domestic threshold (maximum €85,000, identical to the current regime) for the nation of establishment and a cross-border threshold of €100,000 for exempt selling in other EU states. Quarterly sales reports and an EX number are required for this. Non-EU companies are not eligible for the new program.

Rules regarding the place of supply for revenue from EU B2C online live conferences, training, and concerts have changed.

The Value Added Tax regulations for identifying the "place of supply"—the country in which VAT is due—for virtual event admission prices were revised by the EU on January 1, 2025.

The primary adjustment concerned the location of supplies for B2C digital live events where attendees who do not pay taxes are in a different EU state. The host country was replaced by the attendee's home country as the location of supply.

The modifications shifted the B2B supply location to the event's nation and validated the B2C move in a similar manner.

E-Invoicing in the European Union for EU - residents

EC Prior approvals from EC and customers were revoked in April 2025.

VAT liability incentives for non-resident marketplaces and sellers who implement IOSS as of July 1, 2028

The so-called "general approach" to the directive on VAT rules for distance sales of imported goods and import VAT was agreed on May 13, 2025. This will take effect on July 1st, 2028.

In the member state of the items' final destination, foreign traders or platforms will be held accountable for import VAT and VAT on distance sales of imported goods. Because overseas traders or platforms that do not use the Import One-Stop Shop IOSS will have to register in each member state, this will promote the usage of the IOSS.

For suppliers located in third-world nations without a mutual assistance agreement, a fiscal representative must be appointed.

If the provider does not satisfy its responsibilities, the buyers will still have the option to pay the import VAT that is owed. The conditions for this option might be defined by the EU member states.