Value Added Tax Consolidation Act 2010 section 92B

Definitions

Section 92B defines the key terms used throughout the Chapter dealing with the SME exemption scheme for small enterprises.

• Annual turnover is the total VAT-exclusive consideration from supplies of goods and services (excluding disposals of capital assets), covering both taxable supplies and certain exempt supplies such as property, financial services, agency services and insurance, unless those exempt supplies are merely incidental to the person's main activities.
• The Union threshold is set at €100,000 and represents the maximum annual turnover across all EU Member States that a small enterprise may have in order to avail of the cross-border SME exemption scheme.
• Each Member State sets its own annual turnover threshold for the SME exemption scheme as it applies domestically, while the scheme itself is the special arrangement for small enterprises provided for in the VAT Directive.
• Key identification concepts include the Member State of establishment (where the person's business is based), the Member State of exemption (a Member State where the person is not established but avails of the SME exemption), and the SME exemption scheme number (an identification number with the suffix "EX" assigned by the Member State of establishment).