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As of January 1, 2025, small businesses across the European Union (EU) became eligible for the Special Scheme for Small Enterprises (SME), allowing them to opt for VAT exemption in other EU member states. This reform aimed to reduce administrative burdens and simplify tax compliance for businesses operating across borders.
Who Was Eligible?
✅ Small businesses registered in an EU member state
✅ Companies meeting the eligibility criteria under Directive 2006/112/EC
✅ Registration was required through national tax portals
Businesses based in Hungary were able to register via the Customer Portal under the SME section, using their tax identification number to submit the preliminary declaration for cross-border VAT exemption.
Key Considerations:
📌 Private individuals could not access the SME registration system.
📌 Businesses had to comply with VAT Directive rules and national tax regulations.
📌 Further details were provided in the National Tax and Customs Administration’s guidelines.
By taking advantage of this VAT exemption, EU small businesses simplified their tax obligations and reduced costs while expanding into multiple jurisdictions.
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