The SME scheme allows small enterprises to sell goods and services without charging VAT to their customers and alleviates their VAT compliance obligations. The scheme is optional and applicable to small enterprises with a total annual turnover of no more than EUR 100,000 in all Member States.

The Council of the European Union officially adopted the ViDA legislative package on 11 March 2025, removing legal barriers for member states to mandate e-invoicing and introducing harmonized rules for digital reporting across the EU.