Update! 05/02/2025 While still waiting for the final steps in the process of the budget approval, I am not publishing any new specific information. However, I thought it’s important to mention here that all of the thresholds are likely to go down to 25 000€ for all activities.

I will be making a separate post once everything is finalised and more details are available. Sign up to my newsletter to receive updates!

The Financial law for 2025, voted on the 29th of December 2024 changes, among other things, the VAT extemption thresholds for various activites, and cancels one year tolerance for crossing the minor threshold. It also cancels the retroactivity of VAT application from the 1st day of the month during which the major VAT threshold is crossed (read my article on Crossing the VAT threshold to understand the system in more detail)

What does this mean in practice?

New thresholds

From the 1st of January 2025 the thresholds are the following

No more 1-year tolerance

Contrary to what used to be the case, you now are obliged to register for VAT from the 1st of January, if you crossed the minor threshold in the year before that. This means that if your turnover was above 85 000 and below 93 500€ for elling goods, providing accommodation, or restaurant (or above 37 500€ and below 41 250€ for services) in 2024, you are subject to VAT from January 2025.

No more retroactivity

Before, one had to register for VAT and invoice with VAT from the 1st day of the month, during which the threshold was crossed. This is no longer the case – VAT now is to be applied from the day when the threshold was crossed.

Global EU threshold of 100 000€

There is now also a global EU VAT threshold of 100 000€. I am researching more about this topic and will post separaty once I have a good understanding of the topic.

Contact me if you have any questions!