Official notices were sent to Bulgaria, Cyprus, Greece, Ireland, Lithuania, Portugal, Romania and Spain.
According to the European Commission, the directive on the special VAT scheme allows small enterprises to sell goods and services without charging VAT and alleviates their VAT compliance obligations. Moreover, small enterprises established in another Member State than where VAT is due may exempt their supplies from VAT in the same way as domestically established small enterprises can in their respective Member State.
Last week, the Lithuanian Government approved amendments to the Law on the Value Added Tax with the directive’s provisions included. The bill is yet to be adopted by the Seimas.
EU Member States had to transpose the directive into national law by 31 December 2024.