How VAT registration thresholds work
A VAT registration threshold is the turnover level at which a business must register, charge VAT on its sales and file returns. Thresholds vary enormously: some countries register businesses from the first sale, while others exempt small traders up to six-figure turnovers. Two points trip up most businesses:
- Thresholds usually apply only to locally established businesses. A foreign company selling into the country is often required to register from its first taxable sale.
- The period matters. Some thresholds use the previous calendar year, some a rolling 12 months, and some test expected turnover for the coming period too.
Inside the EU, B2C sales of goods and digital services to consumers in other member states are taxed where the customer is once EU-wide cross-border sales exceed EUR 10,000 a year, and can be declared through a single One-Stop Shop return instead of registering in each country. Since January 2025 small EU businesses can also use other member states' small-business exemptions if their total EU turnover stays under EUR 100,000.
The tables below summarise the rules; each country links to its full guide with filing deadlines and the tax authority. Thresholds change often, so confirm with the tax authority before relying on a figure.
European Union
| Country | Registration threshold (resident businesses) | Non-resident / foreign sellers |
|---|---|---|
| Austria | EUR 55,000 gross annual turnover (Kleinunternehmer exemption), with a one-off 10% tolerance | Non-established businesses must register from their first taxable supply in Austria; the domestic small-business exemption does not apply to them |
| Belgium | EUR 25,000 annual turnover (small business franchise scheme); above that registration and VAT charging are mandatory | Non-established businesses must register from their first taxable supply in Belgium; non-EU businesses generally need a fiscal representative |
| Bulgaria | EUR 51,130 taxable turnover in the current or previous calendar year (from 1 January 2026; equivalent of the former BGN 100,000) | Non-established businesses must register before their first taxable supply in Bulgaria; no threshold applies |
| Croatia | EUR 60,000 of supplies in the previous or current calendar year (since 1 January 2025); voluntary registration possible below it | Non-established businesses must register from their first taxable supply in Croatia; no threshold applies |
| Cyprus | EUR 15,600 of taxable supplies in the previous 12 months, or expected within the next 30 days | Non-established businesses must register from their first taxable supply in Cyprus (no threshold) unless they make only 0% supplies |
| Czech Republic | CZK 2,000,000 turnover in a calendar year (registration from the following year), or immediately once turnover exceeds CZK 2,536,500 | Non-established businesses have no threshold; they must register before making any supply subject to Czech VAT |
| Denmark | DKK 50,000 taxable turnover in a 12-month period | Non-established businesses must register from their first taxable supply in Denmark; non-EU businesses generally need a VAT representative |
| Estonia | EUR 40,000 of taxable supplies in a calendar year; voluntary registration possible below it | Non-established businesses making taxable supplies in Estonia must register regardless of turnover in most cases |
| Finland | EUR 20,000 turnover in a financial year | Non-established businesses must register for taxable sales in Finland that are not reverse-charged to the buyer; no threshold applies to them |
| France | Franchise en base: EUR 85,000 for sales of goods and accommodation, EUR 37,500 for services (tolerance up to EUR 93,500 / EUR 41,250) | Non-established businesses must register from their first taxable supply in France; non-EU businesses generally need a fiscal representative |
| Germany | Kleinunternehmer exemption if turnover was up to EUR 25,000 in the prior year and stays below EUR 100,000 in the current year | Non-established businesses must register from their first taxable supply in Germany; the small-business exemption is not available to them |
| Greece | No general registration threshold; businesses register from their first taxable activity, though small businesses with turnover up to EUR 10,000 may use the special exemption scheme | Non-established businesses must register from their first taxable supply in Greece; non-EU businesses generally need a tax representative |
| Hungary | No registration threshold: every business must register before starting. Resident small businesses with annual turnover up to HUF 20 million (2026) may choose the subjective VAT exemption (alanyi adómentesség). | Non-established businesses must register before making taxable supplies in Hungary (except where OSS or reverse charge applies); no threshold |
| Ireland | EUR 85,000 for supplies of goods and EUR 42,500 for services, in any continuous 12-month period | Non-established businesses making taxable supplies in Ireland must register regardless of the thresholds |
| Italy | No general VAT threshold; the regime forfettario flat-rate scheme lets individuals with turnover up to EUR 85,000 operate without charging IVA | Non-established businesses must register from their first taxable supply, via direct identification (EU businesses) or a fiscal representative |
| Latvia | EUR 50,000 of taxable supplies in the previous 12 months; registration within 15 days of exceeding it | Non-established businesses must register before their first taxable supply in Latvia; no threshold |
| Lithuania | EUR 45,000 of taxable supplies in the previous 12 months | Non-established businesses must register before their first taxable supply in Lithuania; no threshold. Non-EU businesses usually need a fiscal representative. |
| Luxembourg | EUR 50,000 annual turnover (franchise scheme), with a 10% tolerance up to EUR 55,000 | Non-established businesses must register from their first taxable supply in Luxembourg |
| Malta | EUR 35,000 of annual domestic turnover; below it small undertakings may register under Article 11 (exempt, no VAT charged or recovered) | Non-established businesses making taxable supplies in Malta must register under Article 10 from their first supply; no threshold |
| Netherlands | No general threshold; the optional KOR small-business scheme exempts businesses with turnover up to EUR 20,000 | Non-established businesses must register from their first taxable supply unless the reverse charge applies to the customer |
| Poland | PLN 240,000 of sales in the previous or current year (from 1 January 2026, up from PLN 200,000) for the subjective exemption; some goods and services require registration regardless | Non-established businesses must register from their first taxable supply in Poland; no threshold |
| Portugal | EUR 15,000 annual turnover (Article 53 exemption regime) | Non-established businesses must register from their first taxable supply in Portugal; non-EU businesses generally need a fiscal representative |
| Romania | RON 395,000 annual turnover (since 1 September 2025, up from RON 300,000) for the small-business exemption | Non-established businesses must register before their first taxable supply in Romania; no threshold. Non-EU businesses generally need a fiscal representative. |
| Slovakia | EUR 50,000 turnover in a calendar year (VAT from 1 January of the next year); immediate registration once EUR 62,500 is exceeded within the year | Non-established businesses have no threshold and become VAT payers from their first taxable supply in Slovakia |
| Slovenia | EUR 60,000 taxable turnover in the previous 12 months (since 1 January 2025) | Non-established businesses must register before making taxable supplies in Slovenia; no threshold applies |
| Spain | No registration threshold; businesses must register before their first taxable supply | Non-established businesses must register from their first taxable supply; non-EU businesses may need a fiscal representative |
| Sweden | SEK 120,000 annual turnover (VAT exemption for small businesses below this, since 1 January 2025) | Foreign businesses making taxable supplies in Sweden must register from the first supply; no threshold applies |
Europe (non-EU)
| Country | Registration threshold (resident businesses) | Non-resident / foreign sellers |
|---|---|---|
| Iceland | ISK 2,000,000 taxable turnover in a 12-month period | Foreign businesses making taxable supplies in Iceland register above the same threshold, generally through a local representative; foreign e-service providers use the simplified VOES system |
| Norway | NOK 50,000 taxable turnover within a 12-month period (NOK 140,000 for charitable and non-profit organisations) | Foreign businesses register above the same NOK 50,000 threshold, directly or via a representative; B2C e-commerce sellers can use the simplified VOEC scheme |
| Russia | No general threshold for companies on the general tax regime. Simplified (USN) and patent taxpayers are exempt if prior-year income is up to RUB 20 million (2026), falling to RUB 15 million in 2027 and RUB 10 million from 2028 | Foreign providers of electronic services must register with the Federal Tax Service (FNS); for other supplies, Russian customers usually withhold VAT as tax agents |
| Serbia | RSD 8,000,000 turnover in the previous 12 months | Foreign businesses making taxable supplies in Serbia must register before starting, with no threshold, generally through a tax representative |
| Switzerland | CHF 100,000 worldwide annual turnover from taxable supplies (CHF 250,000 for non-profit sports/cultural associations and charities) | Foreign businesses supplying goods or services in Switzerland must register once worldwide turnover reaches CHF 100,000 and appoint a Swiss tax representative |
| Turkey | No threshold: businesses register with the tax office when they begin taxable activity | Foreign businesses supplying B2C electronic services register through the simplified Digital Tax Office portal; B2B services from abroad are taxed by the Turkish recipient via reverse charge |
| Ukraine | UAH 1,000,000 taxable supplies over the last 12 calendar months; voluntary registration available below | Non-residents without a permanent establishment cannot register for general VAT, except under the simplified regime for B2C digital services (threshold UAH 1 million) |
| United Kingdom | GBP 90,000 taxable turnover in any rolling 12 months (or expected in the next 30 days); deregistration threshold GBP 88,000 | Non-established taxable persons have no threshold and must register from their first UK taxable supply |
Americas
| Country | Registration threshold (resident businesses) | Non-resident / foreign sellers |
|---|---|---|
| Argentina | No IVA threshold for Responsables Inscriptos; small taxpayers under the Monotributo simplified regime pay a fixed monthly amount instead of IVA | Foreign suppliers of digital services do not register; IVA is collected by card issuers or payment intermediaries, or reverse-charged by business customers |
| Brazil | No general threshold: companies need a CNPJ and, for ICMS, a state registration; small businesses up to BRL 4.8 million revenue may use Simples Nacional | No simplified registration for foreign suppliers under the current system; taxes on imported services are generally paid by the Brazilian customer. From 2027 foreign suppliers to consumers fall into the CBS/IBS system |
| Canada | CAD 30,000 of worldwide taxable supplies in a single quarter or four consecutive quarters (small supplier rule) | Non-residents carrying on business in Canada register under the normal rules; non-resident digital sellers and platforms use simplified registration above CAD 30,000 of supplies to Canadian consumers |
| Chile | No threshold: habitual sellers of goods and taxable service providers must register with the SII | Non-resident providers of digital services and foreign platforms selling goods up to USD 500 to consumers register under a simplified regime from the first sale |
| Colombia | Individuals are not IVA-responsible if prior- and current-year gross income is below 3,500 UVT and other conditions are met; companies must register | Foreign providers of digital services to Colombian consumers must register with the DIAN, or have IVA withheld by card issuers |
| Mexico | No threshold: businesses carrying out taxable activities must register in the Federal Taxpayers Registry (RFC) | Foreign providers of digital services to Mexican consumers must register with the SAT from the first sale; other non-residents are generally covered by withholding or importer rules |
| Peru | No threshold: businesses register in the RUC when they start taxable activities; very small businesses may use the Nuevo RUS simplified regime | Non-domiciled providers of digital services to individuals must charge IGV from the first sale, with card issuers able to act as collection agents |
Asia-Pacific
| Country | Registration threshold (resident businesses) | Non-resident / foreign sellers |
|---|---|---|
| Australia | AUD 75,000 annual GST turnover (AUD 150,000 for non-profit bodies); taxi and ride-sourcing drivers must register regardless of turnover | Offshore sellers must register once Australian GST turnover reaches AUD 75,000, and may use simplified (limited) registration for B2C sales |
| China | General VAT taxpayer status required once annual taxable sales exceed CNY 5 million; below that businesses are small-scale taxpayers, exempt if monthly sales do not exceed CNY 100,000 | No simplified registration regime for foreign businesses; VAT on cross-border services is generally withheld by the Chinese purchaser |
| India | Aggregate turnover of INR 40 lakh for suppliers of goods (INR 20 lakh in special category states) and INR 20 lakh for service providers (INR 10 lakh in special category states) | Non-resident taxable persons must register before making any taxable supply in India (no threshold); foreign providers of online (OIDAR) services to Indian consumers must register regardless of turnover |
| Indonesia | Businesses must register as a VAT-able entrepreneur (PKP) when annual turnover exceeds IDR 4.8 billion | Foreign digital suppliers are appointed by the tax office to collect VAT once Indonesian sales exceed IDR 600 million a year or 12,000 users a year; otherwise B2B imported services are self-assessed by the recipient |
| Japan | Taxable sales above JPY 10 million in the base period (two years prior), or in the first six months of the prior year; businesses issuing qualified invoices must register regardless | Foreign businesses follow the same threshold rules; B2B digital services are reverse-charged, while B2C digital services make the foreign supplier (or designated platform) liable |
| Malaysia | Sales tax: manufacturers with taxable sales above RM500,000 a year. Service tax: generally RM500,000 of taxable services a year, with higher thresholds for some categories (e.g. RM1 million for rental/leasing and financial services, RM1.5 million for construction and private healthcare) | Foreign providers of digital services to Malaysian consumers must register once their digital services to Malaysia exceed RM500,000 a year |
| New Zealand | NZD 60,000 of taxable supplies in the past or next 12 months | Offshore suppliers of remote services or low-value goods must register once supplies to NZ consumers exceed NZD 60,000 in 12 months |
| Philippines | Annual gross sales or receipts above PHP 3 million | Non-resident digital service providers must register once gross sales to Philippine consumers exceed PHP 3 million in 12 months; other non-residents supplying services in the Philippines are generally taxed via withholding by the local payer |
| Singapore | Compulsory once taxable turnover exceeds SGD 1 million in a calendar year (retrospective basis) or is expected to exceed SGD 1 million in the next 12 months | Overseas vendors must register under the Overseas Vendor Registration regime if global turnover exceeds SGD 1 million and B2C sales of remote services or low-value goods to Singapore exceed SGD 100,000 |
| South Korea | No VAT registration threshold: all businesses register; individuals with annual turnover under KRW 104 million may use the simplified taxpayer regime | Foreign suppliers of electronic services to Korean consumers must register under a simplified business registration, with no threshold |
| Thailand | Annual turnover above THB 1.8 million | Non-resident e-service providers and platforms with B2C revenue from Thailand above THB 1.8 million must register via the simplified VES system; other non-residents doing business in Thailand register through a local agent |
| Vietnam | Enterprises register for tax from incorporation; households and individuals are exempt from VAT on annual revenue up to VND 500 million (from 2026) | Foreign suppliers of e-commerce and digital services to Vietnamese individuals must register directly through the tax authority's portal or have tax withheld by local payers or platforms; no minimum threshold |
Middle East
| Country | Registration threshold (resident businesses) | Non-resident / foreign sellers |
|---|---|---|
| Israel | Businesses register as a licensed dealer (Osek Murshe); those below the annually indexed small-dealer ceiling (about ILS 120,000) can be an exempt dealer (Osek Patur) | Foreign businesses supplying goods or services in Israel generally must register through a local representative; B2B imported services are self-assessed by Israeli customers |
| Saudi Arabia | Mandatory above SAR 375,000 of taxable supplies in 12 months; voluntary above SAR 187,500 | Non-residents making taxable supplies in Saudi Arabia for which they are liable to VAT must register from the first supply (no threshold), generally through a tax representative |
| United Arab Emirates | Mandatory above AED 375,000 of taxable supplies and imports in 12 months; voluntary above AED 187,500 | Non-resident businesses with no place of establishment in the UAE must register from the first taxable supply where no one else is liable to account for VAT (no threshold) |
Africa
| Country | Registration threshold (resident businesses) | Non-resident / foreign sellers |
|---|---|---|
| Egypt | Annual turnover of EGP 500,000 under VAT Law No. 67 of 2016; suppliers of table-tax goods and services must register regardless of turnover | Non-residents supplying digital and other services to consumers in Egypt must register under a simplified regime; B2B services from abroad are taxed under reverse charge |
| Nigeria | Taxable persons must register with the Nigeria Revenue Service; small businesses with turnover of NGN 100 million or less and fixed assets under NGN 250 million (not providing professional services) are relieved from charging VAT | Non-resident suppliers of taxable goods and services to Nigeria, including digital services, must register and charge VAT; digital platforms collect VAT on underlying supplies |
| South Africa | Compulsory once taxable supplies exceed R2.3 million in 12 months (from 1 April 2026); voluntary registration above R120,000 | Foreign suppliers of electronic services must register once supplies to South African recipients exceed R1 million in 12 months; other non-residents carrying on an enterprise in South Africa follow the normal thresholds |
Frequently asked questions
What is a VAT registration threshold?
It is the level of taxable turnover above which a business must register for VAT and start charging it. Below the threshold, registration is usually optional, and some countries (for example Denmark, Spain, Mexico and Chile) have very low or no thresholds.
Do foreign businesses benefit from VAT thresholds?
Usually not. Most EU countries and many others require a non-established business to register from its first taxable sale, although EU distance sales to consumers can instead be reported through the One-Stop Shop once EU-wide cross-border B2C sales exceed EUR 10,000.
Which country has the highest VAT registration threshold?
Among the countries on this page, Singapore has one of the highest thresholds at SGD 1 million. In Europe, Switzerland (CHF 100,000 of worldwide turnover) and the UK (GBP 90,000) are the highest, while France and Ireland top the EU at EUR 85,000 for goods.
Related reading
- VAT rates by country — standard and reduced rates for 60 countries.
- VAT on digital services and cross-border e-commerce — OSS, IOSS and place-of-supply rules.
- The reverse charge mechanism — when the customer accounts for VAT instead of you.
- VAT invoice requirements — what a compliant invoice must show once you are registered.
Last reviewed on 27 September 2026.