site.btaCommission Calls on Bulgaria to Fully Transpose Directive on VAT Scheme for Small Enterprises

The European Commission (EC) decided to open infringement procedures by sending letters of formal notice to eight Member States (Bulgaria, Ireland, Greece, Spain, Cyprus, Lithuania, Portugal and Romania) for failing to transpose the Directive on the special VAT scheme for small enterprises (Directive 2020/285), the EC reported on Friday. Member States had to transpose this Directive into national law by December 31, 2024.

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.

Bulgaria now has two months to respond and to complete the transposition and notify its measures to the Commission. In the absence of a satisfactory response, the Commission may decide to issue a reasoned opinion.