EC paves way for increase from €65,000 to €85,000 from 1 January 2023 taking over 63,000 taxpayers out of the VAT regime
The European Commission and European Council (20 Feb 2023) have backed Italy to increase its VAT registration threshold from €65,000 to €85,000 per annum. This would be the highest in the EU.
This threshold only applies to resident businesses; foreign or non-residents must register immediately if required.
The proposal allows Italy to derogate from Article 285 of Directive 2006/112/EC on the common system of value added tax, and repealing Implementing Decision (EU) 2020/647.
Learn more about Italian VAT in our country guide.
The measure has been backdated from 1 January 2023 until 31 December 2024 when it would need a reevaluation.
This increase of the threshold is a simplification measure which removes many of the VAT obligations for businesses operating with an annual turnover no higher than €85 000. It will therefore have a positive impact on the reduction of administrative burden for both businesses and the tax administration without a major impact on the total VAT revenue. Because of the narrow scope of the derogation and its limited application in time, the impact of the measure will in any case be limited.
Currently, based on data available from 2020, the increase in threshold to €85 000 would benefit around 63 441 additional enterprises, leading to a decrease in VAT revenue of approximately 0.06 %.
2023 EU VAT registration & Intrastat reporting threshold
| Country | VAT Registration thresholds | Intrastat thresholds | |||||
| Resident | Non-resident | Arrivals | Dispatches | Arrivals Statistical | Dispatches Statistical | ||
| EU One-Stop Shop | €10,000 | €10,000 EU sellers only | - | - | - | - | |
| Austria | €35,000 | Nil | €1,100,000 | €1,100,000 | €12m | €12m | |
| Belgium | €25,000 | Nil | €1,500,000 | €1,000,000 | €25m | €25m | |
| Bulgaria | BGN 100,000 | Nil | BGN 700,000 | BGN 1m | €7.3m | €14.7m | |
| Croatia | €40,000 | Nil | €400,000 | €200,000 | €345,000 | €400,000 | |
| Cyprus | €15,600 | Nil | €270,000 | €75,000 | €2.7m | €5.8m | |
| Czechia | CZK 2m | Nil | CZK 12m | CZK 12m | CZK 12m | CZK 12m | |
| Denmark | DKK 50,000 | Nil | DKK 22m | DKK 11m | DKK 22m | DKK 11m | |
| Estonia | €40,000 | Nil | €400,000 | €270,000 | €400,000 | €270,000 | |
| Finland | €15,000 | Nil | €800,000 | €800,000 | €800,000 | €800,000 | |
| France | Goods €85,800 Services €34,400 | Nil | €460,000 | €460,000 | €460,000 | €460,000 | |
| German | €22,000 | Nil | €800,000 | €500,000 | €48m | €50m | |
| Greece | Nil | Nil | €150,000 | €90,000 | €150,000 | €90,000 | |
| Hungary | HUF 12m | Nil | HUF 250m | HUF 140m | HUF 5bn | HUF 14bn | |
| Ireland | Goods €75,000 Services €37,500 | Nil | €500,000 | €635,000 | €5m | €34m | |
| Italy | €85,000 | Nil | See country guide | See country guide | See country guide | See country guide | |
| Latvia | €40,000 | Nil | €330,000 | €200,000 | €4m | €6m | |
| Lithuania | €45,000 | Nil | €500,000 | €300,000 | €7m | €10m | |
| Luxembourg | €35,000 | Nil | €250,000 | €200,000 | €4m | €8m | |
| Malta | Goods €35,000 Other €30,000 | Nil | €700 | €700 | €700 | €700 | |
| Netherlands | €20,000 | Nil | €5m | €1m | €5m | €1m | |
| Poland | PLN 207,000 | Nil | PLN 5m | PLN 2.7m | PLN 80m | PLN 128m | |
| Portugal | Nil | Nil | €400,000 | €400,000 | €5m | €6.5m | |
| Romania | RON 445,500 | Nil | RON 1m | RON 1m | RON 10m | RON 20m | |
| Slovakia | €49,790 | Nil | €1m | €1m | €1m | €1m | |
| Slovenia | €50,000 | Nil | €1m | €1m | €4m | €9m | |
| Spain | Nil | Nil | €400,000 | €400,000 | €400,000 | €400,000 | |
| Sweden | SEK 80,000 | Nil | SEK 15m | SEK 4.5m | SEK 15m | SEK 4.5m | |
| Non-EU | |||||||
| Iceland | ISK 2m | ||||||
| Montenegro | €30,000 | n/a | n/a | n/a | n/a | ||
| Norway | NOK 50,000 | Nil | n/a | n/a | n/a | n/a | |
| Russia | RUB 8m (on application) | Nil | n/a | n/a | n/a | n/a | |
| Switzerland | CHF 100,000 | CHF 100,000 global income | n/a | n/a | n/a | n/a | |
| Turkey | Nil | Nil | n/a | n/a | n/a | n/a | |
| UK (Northern Ireland - EU Intrastat only) | £85,000 | Nil | £500,000 | £250,000 | n/a | n/a | |
