Definition
Threshold values are the contract amounts that determine whether EU public procurement rules apply. When a contract's estimated value equals or exceeds these thresholds, contracting authorities must follow full EU procurement procedures, including mandatory publication on TED (Tenders Electronic Daily), use of standard procurement procedures, and adherence to minimum time limits. The European Commission updates these values every two years to account for currency fluctuations.
Key Points
- EU thresholds are updated every two years by the European Commission
- Different thresholds apply to central government, sub-central authorities, and utilities
- Works contracts have significantly higher thresholds than supplies and services
- Values are calculated excluding VAT but including all lots and contract duration
- Below-threshold contracts follow national rules but must still respect EU principles
How Threshold Values Work
When planning a procurement, contracting authorities must estimate the total contract value to determine which rules apply. If the estimated value meets or exceeds the relevant threshold, the full EU procurement directives apply. This means the contract must be advertised EU-wide on TED, standard procurement procedures must be used, and minimum time limits for submissions must be respected.
The thresholds serve two purposes: they ensure significant contracts are open to competition across the EU single market, while allowing smaller purchases to follow simpler national procedures. This balances market access with administrative efficiency.
Calculating Contract Value
Contract value estimation must follow specific rules to prevent artificial splitting of contracts. The estimated value is the total payable amount excluding VAT, including any options, renewals, prizes, or payments to candidates.
For framework agreements and dynamic purchasing systems, calculate the maximum estimated value of all contracts envisaged over the entire duration. For regular contracts with uncertain total value, estimate based on either the total value over 48 months or the monthly value multiplied by 48.
Splitting contracts to avoid thresholds is prohibited. If similar purchases could reasonably be procured together, their combined value determines which threshold applies.
Different Threshold Categories
The EU applies different thresholds depending on who is buying and what they are purchasing. Central government authorities (ministries, central agencies) have lower thresholds for supplies and services, reflecting their greater purchasing power and market impact.
Sub-central authorities (regional and local governments, universities, hospitals) have higher thresholds, recognizing that their individual purchases may have less cross-border interest.
Utilities operating in water, energy, transport, and postal sectors have their own thresholds under a separate directive, reflecting the commercial nature of these sectors.
Works contracts - construction and civil engineering - have the highest thresholds across all categories, as these projects typically require local presence and knowledge.
Current Threshold Values
| Category | Threshold Value | Year |
|---|
Check Your Contract Value
Frequently Asked Questions
Contracts below EU thresholds follow national procurement rules, which vary by country. However, EU Treaty principles still apply: transparency, equal treatment, and non-discrimination. Contracts with clear cross-border interest may still need EU-wide advertising. Many countries have their own lower thresholds for national publication requirements.
No. Threshold calculations always use values excluding VAT. However, you must include all other costs: delivery, installation, maintenance during the contract period, options, renewals, and any prizes or payments to participants.
The European Commission reviews and updates threshold values every two years. Updates typically take effect on January 1st of even-numbered years (2024, 2026, etc.). The adjustments reflect exchange rate fluctuations with the Special Drawing Rights (SDR) used in the WTO Government Procurement Agreement.
No. Artificial splitting of contracts to avoid EU thresholds is prohibited. You must aggregate the value of all lots when dividing a contract, and consider the total value of similar purchases that could reasonably be procured together. Deliberate splitting can result in legal challenges and contract annulment.
For contracts combining different types (e.g., supplies and services), the threshold for the main subject applies. The main subject is determined by the highest estimated value component. For works combined with services, special rules may apply - the works threshold is used if works are the main object.
Official Sources & Further Reading
Official threshold values and explanatory notes from the European Commission
single-market-economy.ec.europa.euThe main EU public procurement directive with threshold provisions
eur-lex.europa.euWhere above-threshold contracts must be published
ted.europa.eu