VAT Exemption for Small Businesses
In an announcement of 22 April 2022, the Ministry of Finance has reminded small businesses they needed to request an opt-out before 10 June 2022.
Small businesses that are not part of a VAT group and that have a turnover under the threshold of €25,000 in the previous year for supplies of goods and services can be exempted from VAT (article 56bis VAT Code and Royal Decree 19).
They are exempt from most VAT obligations, including filing VAT returns, but they cannot recover the VAT paid on purchases of goods and services used for their business.
The Ministry of Finance will address them during the month of May via MyMinfin explaining the terms and conditions of the VAT exempt regime. If they meet the conditions and wish to opt out of the VAT regime, they had to submit a request online via the application application e604 before 10 June 2022.