The Court of Justice of the European Union (CJEU) ruled in case C-171/23 (UP CAFFE) on 4 October 2024.
As per the ruling, forming a new company to retain the VAT exemption for small enterprises after the previous company conducted the same activity no longer qualifies as a small enterprise and is considered abusive.
The CJEU’s special scheme for small enterprises offers administrative simplifications to support their creation, activities, and competitiveness while balancing the administrative costs of fiscal supervision with the small tax amounts involved, easing the burden on both small businesses and tax authorities.
