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Proposed Council Implementing Decision Authorizing the Netherlands to Extend VAT Exemption Threshold — Orbitax Tax News & Alerts

A proposal for a Council Implementing Decision has been published that would authorize the Netherlands' continued derogation from Article 285 of the VAT Directive (2006/112/EC) regarding its VAT exemption (registration) threshold. The proposed decision, dated 23 November 2022, authorizes the Netherlands to continue to allow an exemption from VAT for taxable persons whose annual turnover does not exceed EUR 25,000. The EUR 25,000 VAT threshold was previously approved from 1 January 2020 to 31 December 2022 and as provided by the proposed decision, would be extended to 31 December 2024. With effect from 1 January 2025, all EU member states are authorized to implement a VAT threshold of up to EUR 85,000 as provided by Council Directive (EU) 2020/285 and, therefore, the Netherlands' EUR 25,000 threshold no longer needs special authorization from that date.