Cross-border - Special Small Business Regime

The "European VAT Special Regime for Small Enterprises" application is our country's electronic interface for the operation of the new cross-border VAT exemption regime for small enterprises.

Small businesses established in our country that wish to apply the VAT exemption in other EU Member States use the application to: 
- submit the relevant request (prior notification) to the IAPR for the application of the cross-border small business regime.

- extend the application of the cross-border regime to other EU Member States or request the cessation of use of this regime in all or some of them, by updating the prior notification

- submit for each calendar quarter after their inclusion in the cross-border small business regime the information regarding the total value of the supplies or services they made within that quarter in each of the EU Member States (quarterly reports)

- inform the IAPR in the event that the turnover within the EU exceeds the threshold of EUR 100,000.

The information provided through it is stored in order to be immediately accessible in the EU Member States in which the company wishes to apply the exemption.
 
 

Inclusion process

1. Submitting a Request through the application. 
2. The VAT exemption can be applied by eligible small businesses only after the IAPR has granted the TIN/VAT with the suffix “-EX” or notified that it can apply the exemption in a Member State, as the case may be.

3. Domestic small business regime: The same application is also used for inclusion in the domestic regime, if the business wishes to apply it simultaneously with the cross-border small business regime. It is noted that the national turnover threshold that must be met for inclusion in or remaining in the domestic small business regime is EUR 10,000.
 

Key features of the new regime

This regime allows small businesses to expand their activity to other Member States without the usual administrative burdens, such as obtaining a TIN or the obligation to submit declarations depending on the national rules of each Member State. 
In order to apply the regime, the following thresholds must be met cumulatively:
i. the turnover of the business within the Union, in the current and the previous calendar year, must not exceed the amount of EUR 100,000 per year. 
ii . the turnover within each of the Member States in which the business wishes to apply the exemption must not exceed, in the current and the previous calendar year, the national threshold set by each of those Member States. 
Note: Some Member States may set as an additional condition for granting the exemption: the turnover of the two previous years must not exceed the national threshold they have set. Detailed information on the thresholds for each country is available on the EU website.
 

Benefits for businesses
 

•    Cross-border exemption: Exemption from VAT of sales of goods and services made in the Member States where the regime applies.
•    Simplified procedures: Businesses will be able to make use of the regime with simplified procedures, both in their Member State of establishment and in other Member States applying the same regime. They are exempt from the obligation to register for VAT purposes (e.g. obtaining a TIN, submitting declarations, etc.) in the Member States where the exemption applies, provided that the obligations related to the cross-border small enterprise regime are met.
•    Set thresholds: Both for joining and for remaining in the cross-border regime, the EU turnover thresholds of EUR 100,000 and the national turnover thresholds established by the Member States where the exemption applies must be met.

 

Business Obligations

• After joining the cross-border small business regime, the company must submit to the IAPR quarterly reports on the transactions it carries out each quarter in each of the EU Member States, in order to monitor compliance with the exemption limits (domestic/national and EU). These reports are submitted by the last day of the month following the end of each calendar quarter (see Deadlines)

• In case of exceeding the limit of EUR 100,000, the business must submit a Final Report - Exceedance Report, within 15 working days from the transaction in which the excess was made.

• The company applying the cross-border small business regime must indicate the TIN/VAT with the suffix "-EX" on the invoices (simplified or not) that it issues.