|Update:||Compliance Alert - More than 63 000 businesses exempted from SDI obligation by increased VAT exemption threshold|
The European Commission (EC) released a memorandum explaining Italy’s recent request for a derogation from Article 285 of the VAT Directive.
The European Council recently approved Italy’s request to increase the VAT exemption threshold.
The approval would benefit over 63 000 companies, which is a significant relief for small businesses.
Therefore, taxpayers not reaching EUR 85 000 in revenue will be exempt from VAT obligation. Furthermore, this measurement has an implication on related matters, such as exempting businesses from using SDI.
This approval will backdate from 1 January 2023 and expire on 31 December 2024.