As businesses across Europe continue to navigate the intricacies of VAT (Value Added Tax), it’s crucial for entrepreneurs and companies to stay informed about the VAT Registration Thresholds. These thresholds determine when a business must register for VAT in a given EU member state. If you’re planning to expand your business or start selling goods and services in Europe, understanding the VAT registration thresholds is vital to staying compliant and avoiding penalties.
What Are VAT Registration Thresholds?
In the EU, the VAT Registration Thresholds determine when a business must register for VAT in a particular country. If your taxable sales exceed a certain threshold in a country, you must register for VAT there. These thresholds vary across EU member states, meaning the VAT registration rules aren’t one-size-fits-all.
VAT registration thresholds typically apply to cross-border sales of goods and services within the EU. However, some countries apply these thresholds specifically for domestic sales, which is why it’s crucial to check local regulations in each jurisdiction.
The 2025 VAT Registration Thresholds
As of 2025, the EU has maintained specific VAT thresholds for registration that businesses must adhere to. Here are the key points:
General Thresholds for Distance Selling (Goods Sold Across EU Borders):
The EU introduced a harmonized threshold for distance selling within the EU. This applies when businesses are selling goods to consumers (B2C) in other EU countries. The EU has standardized the VAT registration thresholds for total sales across member states.
If a business’s total sales in the EU (across all EU countries) exceed the threshold in a year, it will be required to register for VAT in each country where its sales exceed the VAT threshold.
If the business’s total sales across the EU remain under the threshold, it can opt to register for VAT in its home country and charge VAT at local rates for all cross-border sales.
Thresholds for Domestic Sales:
Each EU country has its own VAT registration threshold for domestic sales (i.e., sales made within the same country). These thresholds vary from country to country. The exact amounts depend on the country in question, and businesses should be aware of local regulations to ensure compliance.
Thresholds for Specific Sectors: Some industries may face different VAT thresholds or exemptions. For example, if a business operates in the digital economy, such as selling online services (e-books, software, etc.), it may have additional VAT obligations under the EU’s One-Stop-Shop (OSS) system, which aims to simplify VAT compliance for cross-border digital sales.
The One-Stop-Shop (OSS) and VAT Registration: For businesses engaging in cross-border e-commerce within the EU, the OSS system allows them to register for VAT in just one EU country and account for VAT on all their sales in other EU countries. This eliminates the need to register in every EU member state where sales occur, as long as the total sales remain under the VAT threshold.
- If a business exceeds the VAT threshold for cross-border sales, it must register for VAT under the OSS scheme and remit VAT at the local rates of the countries where the customers are located.
VAT Registration Thresholds by Country:
| Country | VAT Registration Threshold for Resident Businesses | VAT Registration Threshold for Non-Resident Businesses |
| Austria | €35,000 (per annum) | Nil threshold. A VAT registration is required for any business performing taxable supplies in Austria. |
| Belgium | No Threshold, below EUR 25 000 annual turnover one can apply for a special VAT exemption scheme | No threshold: registration required for any taxable activity in Belgium |
| Bulgaria | BGN 166,000.00 | No threshold: registration required for any taxable activity in Bulgaria |
| Croatia | EUR 39,000 per annum | No threshold: registration required for any taxable activity in Croatia |
| Cyprus | EUR 15,600 per annum | No threshold: registration required for any taxable activity in Cyprus |
| Czech Republic | Resident Businesses CZK 2,000,000 per annum (approx. €80,000) | Nil threshold. A VAT registration is required for any business performing taxable supplies in Czech Republic |
| Denmark | DKK 50,000 per annum | No threshold: registration required for any taxable activity in Denmark |
| Estonia | EUR 40,000 per annum | Not required to register if all supplies are under the reverse-charge mechanism; must register if they have a fixed establishment in Estonia and make taxable supplies exceeding EUR 40,000 from the beginning of the calendar year |
| Finland | EUR 15,000 per annum | No threshold: registration required for any taxable activity in Finland |
| France | EUR 34,400 per annum for services; EUR 91,000 per annum for goods. | No threshold: registration is required for any taxable activity in France. |
| Germany | EUR 22,000 per annum and will not exceed EUR 50,000 in the current year | No threshold: registration required for any taxable activity in Germany |
| Greece | EUR 10,000 per annum | No threshold: registration required for any taxable activity in Greece |
| Hungary | No threshold, all persons undertaking business activity in Hungary must register for VAT. But small businesses with an annual turnover of less than HUF 12,000,000 per may apply for exemption. | No threshold: registration required for any taxable activity in Hungary |
| Ireland | EUR 40,000 for services (EUR 42,500 from 1 Jan 2025); EUR 80,000 for goods per annum (EUR 85,000 from 1 Jan 2025) | No threshold: registration required for any taxable activity in Ireland |
| Italy | There is no threshold. There is, however, a special regime for resident businesses with a turnover of less than EUR 85,000 per annum. | There is no threshold. Registration is required for any taxable activity in Italy. |
| Latvia | EUR 50,000 per annum | No threshold: registration required for any taxable activity in Latvia |
| Lithuania | EUR 45,000 per annum | No threshold: registration required for any taxable activity in Lithuania |
| Luxembourg | EUR 35,000 per annum | No threshold: registration required for any taxable activity in Luxembourg |
| Malta | EUR 35,000 [Goods] EUR 30,000 per annum [services] | No threshold: registration required for any taxable activity in Malta |
| Netherlands | Thresholds Registration Established Business: None Non-established: None Intra-Community acquisitions EUR10,000 Electronically supplied services EUR10,000 recovery of VAT refund for non-established entities is subject to certain conditions | No threshold: registration required for any taxable transactions Distance Selling (EU only) EUR 10,000 per annum under the OSS system |
| Poland | PLN 200,000 per annum | No threshold: registration required for any taxable activity in Poland |
| Portugal | EUR 12,500 per annum | No threshold: registration required for any taxable activity in Portugal |
| Romania | RON 300,000 per annum | No threshold: registration required for any taxable activity in Romania |
| Slovakia | EUR 49,790 per annum | No threshold: registration required for any taxable activity in Slovakia |
| Slovenia | EUR 50,000 per annum | No threshold; registration required for any taxable activity in Slovenia |
| Spain | None, all businesses must register | No threshold; registration required for any taxable activity in Spain |
| Sweden | SEK 80,000 per annum | No threshold; registration required for any taxable activity in Sweden |
Why These VAT Thresholds Matter
The VAT threshold is designed to protect small businesses from unnecessary administrative burdens. Smaller businesses with limited cross-border sales or domestic operations can avoid the complexity of registering and managing VAT in multiple countries.
However, for larger businesses or those engaged in e-commerce, these VAT thresholds can have significant implications. Once your sales exceed the threshold, you may need to file VAT returns in multiple countries, which can become time-consuming and complex without the right support.
Key Takeaways for 2025
- Threshold for EU-Wide Sales: If your total sales across all EU countries exceed the VAT threshold, you must register for VAT in the countries where sales surpass the local VAT thresholds.
- Local VAT Registration Threshold: Different EU countries have their own specific VAT thresholds, which can vary significantly. Ensure you are aware of these thresholds for each country you do business in.
- Consider the OSS: The OSS simplifies VAT compliance for cross-border digital services and goods sales within the EU.
- Monitor Sales Carefully: Always track your total sales, both domestic and cross-border, to ensure you don’t exceed the VAT registration threshold without realizing it.
Conclusion
As we venture further into 2025, staying on top of EU VAT thresholds is crucial for businesses operating within or outside the European Union. Whether you’re engaging in cross-border e-commerce or expanding your services into new EU markets, understanding VAT compliance ensures smooth operations and prevents costly fines. It’s always advisable to consult with a VAT professional to ensure you’re on the right side of the law and take full advantage of any exemptions or VAT thresholds that may apply to your business.
Check out our free country guides for more information on specific countries’ VAT compliance!
