do I have to complete VSME or CSRD, what is the difference

VSME is shorter and voluntary, CSRD is mandatory and comprehensive

VSME is the voluntary EFRAG standard for non-listed SMEs; CSRD is the European directive that requires large and listed companies to provide comprehensive sustainability reporting. If you receive the question directly from the regulator or must report according to the directive, CSRD applies and you have no choice. If you receive the question because a large customer wants to ask you as a supplier about sustainability, VSME is usually the format that customer uses — precisely because the basic module of VSME is designed as a lighter version that smaller suppliers can complete without having to go through the full CSRD reporting process.

The practical difference lies in the depth of the questions. VSME asks for basic data: number of employees, energy consumption, emissions in outline, a few policy questions. CSRD additionally asks for a double materiality analysis, supply chain information on scope 3, and often an external assurance statement. If you receive a VSME list and it concerns a question about how many people work for you or what the turnover is, these are often the same basic data that are also in the number of employees and annual turnover your dossier. A CSRD list from a large customer often contains the same basic questions, supplemented with questions that go beyond what VSME asks.

Where the distinction comes from

Directive (EU) 2022/2464, the CSRD, imposes the reporting obligation on enterprises that fall within the scope of the directive — usually large and listed companies. EFRAG has additionally developed the VSME standard as a voluntary instrument, specifically for SMEs that are not themselves subject to the CSRD obligation, but must provide data as a supplier to a customer that does. Which format you receive depends on the customer sending the list — this is not stated in the directive itself, but follows from that customer's choice.