Global Daily Tax News, Monaco Implement VAT Law Amendments, (Jan 6, 2025)

Monaco introduced a number of changes to its value-added tax regime on January 1, 2025.

The following thresholds newly apply for value-added tax registration for 2025:

• EUR85,000 for supplies of goods;

• EUR37,500 for services, other than accommodation services and services consumed on site;

• EUR50,000 for authors of intellectual works and performing artists.

Registration is required in the following year when these thresholds are exceeded. Additionally, a taxpayer will be required to be registered in the current year when their turnover from these activities exceeds the relevant aforementioned threshold by 10 percent or more.

Rules have also been eased regarding the appointment of a tax representative not resident in France or Monaco.

In line with changes being introduced across the European Union, the place of supply for services and ancillary services related to events that are streamed or otherwise made virtually available will be the place where the non-taxable recipient is established, has their permanent address, or usually resides.

Newly, taxable persons may deduct value-added tax on electricity consumed to power land vehicles excluded from the right of deduction, when these vehicles are used exclusively for operations giving rise to the right to deduction. The deduction is allowed only for vehicles exclusively powered using electric energy. The measure also applies to rented vehicles where the tax related to the rental is not deductible.

Another notable change is the introduction of 10-percent VAT on accommodation services offered by hotels and other similar facilities for fewer than 31 nights where, in addition to the provision of furnished accommodation, the taxable person provides three or more of the following services: breakfast, regular cleaning, the provision of household linen, or a reception.