Welcome
Daily Tax Report ®

Top EU Court Narrows Small Business Value-Added Tax Exemption

July 9, 2020, 11:38 AM

Businesses must include rental income when determining if their annual turnover is below the threshold to register for value-added tax, Europe’s top court said Thursday.

The ruling by the European Court of Justice provides an important clarification for Europe’s myriad small enterprises that rely on the exemption to avoid paying VAT, which averages more than 21% across the 27-nation bloc.

The “small enterprise exception” case involved a dispute between Romania’s public finance authority and a sole trader who works primarily as a university professor and consultant in audit and tax, but also as an accountant, lawyer and...

To read the full article log in. To learn more about a subscription click here.