This guide explains how to obtain a VAT identification number for conducting business within the European Union. Whether you need to register in your home country or in another EU member state for cross-border operations, understanding the process helps ensure smooth and compliant registration.
VAT registration requirements vary by situation. The main scenarios that trigger VAT registration obligations include:
Exceeding domestic thresholds: Each EU country sets a turnover threshold for mandatory VAT registration. Businesses exceeding this threshold from taxable sales must register. Thresholds range from €0 (no threshold) in some countries to over €80,000 in others.
Intra-community trade: Businesses selling goods to VAT-registered customers in other EU countries typically need a VAT number to apply zero-rating and participate in the reverse charge mechanism. Without a VAT number, you cannot benefit from these arrangements.
Distance selling thresholds: Businesses selling goods to consumers in other EU countries face distance selling thresholds. Once exceeded, you must either register for VAT in the destination country or use the One-Stop Shop (OSS) scheme.
Importing goods: When importing goods from outside the EU, VAT is due at importation. Having a VAT number allows you to account for this VAT through your returns rather than paying it at the border.
The most common scenario is registering for VAT in the country where your business is established. The general process involves:
Check whether your taxable turnover exceeds the registration threshold in your country. Some businesses choose to register voluntarily even below threshold to reclaim input VAT or to appear more professional to B2B customers.
Typical documentation requirements include:
Most EU countries now offer online VAT registration through their tax authority websites. Some still require paper applications or a combination of online and physical document submission. Processing times vary from a few days to several weeks.
Once approved, you receive your VAT identification number. This number should appear on all invoices, and you become responsible for charging VAT on taxable supplies, filing periodic returns, and maintaining proper records.
Non-resident businesses may need to register for VAT in EU countries where they have tax obligations but no physical establishment. Common scenarios include:
Holding stock: If you store goods in another EU country (e.g., in an Amazon fulfillment center), you typically need VAT registration there.
Distance selling: When B2C sales to a country exceed the distance selling threshold (now harmonized through OSS, but direct registration remains an option).
Local supply: If you supply goods or services within another member state, you may need local registration depending on the nature of supplies.
The process for non-resident registration is generally more complex:
Fiscal representation: Some countries require non-EU businesses to appoint a fiscal representative—a local entity responsible for VAT obligations. EU businesses usually do not need representatives in other EU countries.
Additional documentation: Expect to provide certified translations, apostilled documents, and evidence of your VAT status in your home country.
Longer processing: Non-resident applications typically take longer to process as authorities verify the legitimacy of foreign applicants.
Professional assistance: Many businesses use specialized VAT agents or advisors for non-resident registrations due to the complexity and language barriers involved.
The One-Stop Shop scheme, introduced in July 2021, simplifies VAT compliance for businesses selling goods and services to consumers across the EU. Instead of registering separately in each country where you have customers, you can register for OSS in your home country and report all EU B2C sales through a single return.
OSS is particularly beneficial for e-commerce businesses. It covers:
OSS does not cover all scenarios. B2B sales, goods stored in other countries, and certain services still require direct registration where applicable.
Domestic VAT registration thresholds vary significantly across EU member states. Some examples (as of 2025, verify current figures with national authorities):
These thresholds change periodically. Always verify the current threshold with the relevant national tax authority before making registration decisions.
Once registered, your ongoing obligations include:
Charging VAT: Apply the correct VAT rate to taxable supplies and include VAT on invoices with required details.
Filing returns: Submit periodic VAT returns (monthly, quarterly, or annually depending on the country and your turnover). Returns report output VAT collected and input VAT to be reclaimed.
Record keeping: Maintain invoices, receipts, and accounting records for the required retention period (typically 6-10 years).
Intra-community reporting: If you make B2B supplies to other EU countries, you may need to submit EC Sales Lists (recapitulative statements) reporting these transactions.
Once you have your VAT number, you can verify it and your customers' numbers through VIES. See our VAT Verification Guide for detailed instructions on using the validation system.
