The European Commission has opened infringement procedures against Belgium, France, and Malta for failing to implement the IT systems required for the EU small business VAT scheme.
The European Commission has urged Belgium, France, and Malta to fully implement the EU’s small business VAT scheme for cross-border supplies by completing the required IT systems for information exchange, as set out in Council Directive (EU) 2020/285.
In its October 2025 infringements package, the Commission launched infringement procedures and sent letters of formal notice to the three countries for not providing the necessary IT features to enable data sharing between Member States. These systems are vital for the scheme to function properly, allowing small businesses to sell goods and services without charging VAT and to enjoy simpler compliance rules across the EU.
All Member States were expected to have the systems in place by 1 January 2025, but the Commission noted that Belgium, France, and Malta have yet to do so. The three countries now have two months to respond and address the issues. If they fail to comply, the Commission may issue a reasoned opinion.
