The Council of the European Union approved in October 2017 the request of Romania to lift the value-added tax exemption (T.V.A.) to the value of 88,500 €.
The measure approved by the Council of the European Union will significantly reduce its VAT obligations for small businesses and will be applicable from 1 January 2018 until the end of 2020.
Increasing the VAT exemption threshold from € 65,000 to € 88,500 should relieve the tax administration of the task of monitoring the collection of a low income from a large number of small businesses.
Currently and until December 31, 2017, small businesses whose annual turnover does not exceed € 65,000 are exempt from VAT.
Consult the European Council Decision here.
Article created by Contabiz Expert Accounting