The Government intends to double the VAT threshold to €20,000 in a move that will delight countless small traders for whom the task of completing VAT returns is another drag on their time and business efficiency.
The good news gets better as the government also intends that VAT accounting will only start to become obligatory when the taxable person exceeds the €20,000 “in three consecutive calendar years or whenever it is exceeded, in a single year, by more than 25%.”
This new VAT limit is for self-employed workers without organised accounting, according to a preliminary proposal for inclusion in the 2018 State Budget, and it is planned the amendment will start as of January 1st.
The government’s objective is “to raise the turnover threshold for which the special exemption scheme, up to a maximum of € 20,000, is applicable by eliminating the threshold set out in Article 53 (2) Of the VAT Code.”
The VAT code currently states that employees without IRS (green receipts) or paying Corporation tax (IRC) as a sole trader, who do not carry out import, export or related activities are exempt from this tax up to a turnover of €10,000. This is the figure that will be doubled.
More information as news unfolds, but the intent by the socialist administration is to ease the burden and cut down on State employees’ effort currently expended in raising relatively little VAT from hordes of small traders.
News courtesey of http://algarvedailynews.com/news