You are here://FROM JANUARY 1ST 2016, THE LIMIT OF THE ANNUAL TURNOVER FOR SMALL BUSINESSES WHICH CAN BENEFIT FROM THE EXEMPTION ARRANGEMENTS INCREASES FROM 15.000EUR TO 25.000EUR

FROM JANUARY 1ST 2016, THE LIMIT OF THE ANNUAL TURNOVER FOR SMALL BUSINESSES WHICH CAN BENEFIT FROM THE EXEMPTION ARRANGEMENTS INCREASES FROM 15.000EUR TO 25.000EUR

Companies that fall under this exemption should not account VAT on its sales operations, and cannot recover VAT on purchases either. Nevertheless, they are subject to a number of VAT obligations, such as; a declaration of the start of such activities needs to be presented (with the communication of subsequent changes), in case of issuing invoices, these should be emitted without VAT with the reference “Régime particulier de franchise des petites entreprises”, and must annually present a list of reverse charge operations, etc.

This treatment is optional. Contrary to previous practice, it would have effect only on the specific request of the taxpayer. The companies, whose turnover in 2015 did not exceed the limit of 25,000 Euros and wanted to benefit from the system of tax exemption from 1st January 2016, had to inform the competent VAT Authorities through a statement from 15th December 2015. Otherwise, the “Régime particulier de franchise des petites entreprises” would apply from 1st July 2016, provided that it is requested by 1st June 2016 the latest.

2017-09-18T16:22:20+00:00 28/06/2016|Latest news|