Italy has received approval from the European Council to raise its VAT exemption threshold from 65,000 euros to 85,000 euros, a move that is expected to benefit small businesses in the country. The approval will be in place until December 31, 2024, after which the European Union will evaluate the decision.
The increased threshold will provide significant relief to small businesses in Italy, as it allows them to generate up to 85,000 euros in revenue before being required to charge and pay VAT. This alleviates the administrative burden of VAT for smaller businesses, enabling them to concentrate on expanding their operations.
The European Commission anticipates that this decision will give a much-needed boost to small businesses in Italy, which have been struggling due to the economic fallout of the COVID-19 pandemic.
Disclaimer: Reproduced/Adapted with permission from Global VAT Compliance.