Key takeaways
- Small businesses with annual turnovers below €25,000 can now benefit from the new VAT franchise regime starting in 2024.
- Eligible businesses will receive a notification via the MyMinfin portal in May 2024 confirming their qualification.
- Applications must be submitted by June 1, 2024, using the e604 form to take advantage of simplified VAT obligations.
Small businesses with annual turnovers under €25,000 now have the opportunity to benefit from the VAT franchise regime. This new initiative exempts eligible businesses from most VAT obligations, simplifying administrative processes and allowing owners to focus on growth.
Eligibility and application
To qualify, your business’s 2023 turnover must not exceed the threshold. Eligible businesses will receive a notification letter titled “Application of the tax exemption regime” in May 2024, accessible through the MyMinfin portal under “My documents.”
How to apply
The deadline to opt into this VAT regime is June 1, 2024, and applications should be submitted via the e604 form.
This simplified VAT regime aims to support small business prosperity by reducing financial and administrative burdens. If you meet the criteria, applying early can help ensure a smoother transition into the new fiscal year.
Frequently asked questions
Who qualifies for the new VAT franchise regime in 2024?
Small businesses with an annual turnover under €25,000 in 2023 are eligible for the VAT franchise regime. Those who qualify will receive a notification titled “Application of the tax exemption regime” via the MyMinfin portal in May 2024.
How can I apply for the VAT franchise regime?
To benefit from the simplified VAT regime, eligible businesses must submit an application using the e604 form by June 1, 2024. Applying early ensures a smooth transition and helps small business owners reduce their VAT compliance and administrative workload.
