Under the October 21 proposal to the EU Deforestation Regulation (EUDR), the European Commission's definition of small and medium-sized enterprises (SMEs) remains aligned with the EU’s general SME classification:
- Fewer than 250 employees, and
- Either < €50 million in turnover or < €43 million in total assets
However there was a proposed update to the compliance deadline for SMEs, proposing a six-month extension. Under the new proposal, their compliance deadline would move from June 30, 2026 to December 30, 2026.
Important: This extension is part of a broader simplification package and remains a proposal, it must still be adopted by the European Parliament and Council before taking effect.
