The EU definition of small and medium-sized enterprises (SMEs) remains aligned with the EU’s general SME classification:
• Medium enterprise: Fewer than 250 employees and ≤ €50 million turnover (or ≤ €25 million balance sheet)
• Small enterprise*: Fewer than 50 employees and ≤ €10 million turnover (or ≤ €5 million balance sheet)
• Micro enterprise: Fewer than 10 employees and ≤ €900,000 annual turnover (or ≤ €450,000 balance sheet total)
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.
