New VAT exemption announced

in News · 27-11-2020 01:00:00 · 0 Comments

Taxpayers with a turnover of up to €12,500 in the previous year and the three preceding years enjoy exemption from VAT, according to a proposal of the CFP adopted on 24 November during a special vote on the State Budget for 2021.

The measure strengthens the scope of an amendment to the VAT Code made in the State Budget for 2020 which increased the value of the VAT exemption for taxpayers under the simplified scheme from €10,000 to €12,500.

However, the rule provided for a transitional regime for the year 2020, stipulating that those who opened activity until 31 March 2020 maintain the exemption if they do not exceed €10,000 of invoicing. For those who have opened activities after that date, the exemption is limited to €11,000 of invoicing.

The proposal of the CFP, presented in the framework of the State Budget for 2021 (OE2021) and approved on Tuesday evening with the favourable votes of all parties, with the exception of the PSD which abstained, provides that taxable persons who “have not achieved a turnover exceeding €12,500 in the previous calendar year and the three preceding calendar years” maintain their VAT exemption.

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