You Are Currently Under the Simplified VAT Scheme

The simplified VAT scheme (2 instalments in July and December, then a balancing payment in May of the following year) is changing on 01/01/2027.

Change in the frequency of VAT returns:

• Quarterly, if your turnover does not exceed €1M in (N-1) and €1.1M in (N)

• Monthly if your turnover exceeds these thresholds.

For mixed activities (sale of goods + supply of services, often found in businesses that sell machinery and also provide after-sales service), the turnover to consider should not be split by activity, but taken as a whole.

In practical terms, what does this mean:

• You go from 1 annual return to at least 4

• A bookkeeping pace to rethink: your invoices need to be recorded every quarter (or every month), rather than once a year. You haven't heard the last of your accountant 😉

• Cash flow to plan ahead: payments are spread more evenly across the year (no surprise at balance time), but the advantage (or trap?) created by the cash-flow timing gap disappears.