Whether you are a domestic business reaching a registration threshold or a foreign company making taxable supplies in the EU, understanding the VAT registration process is essential. This guide explains who needs to register, how to apply, and what to expect after registration.
VAT registration in the EU is not universal — it depends on where you are established, where you make supplies, and the value of those supplies. The two most common triggers are:
Domestic threshold registration: If you are established in an EU country and your annual taxable turnover exceeds the national VAT registration threshold, you must register. Thresholds vary by country — Germany requires registration from the first euro of taxable turnover, while other states set thresholds ranging from €10,000 to €85,000. Once you exceed your country's threshold, you typically have 30 days to register.
Non-resident registration: If you are established outside a particular EU country but make taxable supplies there — for example, selling goods from a warehouse in France — you may be required to register regardless of turnover. This applies to both EU-based businesses operating cross-border and to non-EU businesses trading into the EU.
Since July 2021, businesses selling goods or digital services to consumers across multiple EU countries can use the One Stop Shop (OSS) scheme instead of registering separately in each country. OSS allows you to register in a single EU member state and file one quarterly VAT return covering all your EU-wide consumer sales. This significantly reduces the administrative burden for e-commerce sellers and digital service providers.
OSS applies to B2C cross-border sales. For B2B sales to VAT-registered businesses, the reverse charge mechanism generally applies instead and your customer accounts for the VAT themselves.
Step 1 — Determine where to register. Identify which EU country or countries require registration based on your supplies. If you are using OSS, choose the member state where you are established as your registration state.
Step 2 — Gather documentation. Most authorities require proof of business identity (e.g. company incorporation certificate), proof of trading activity (e.g. invoices or contracts), and the personal identity of directors or beneficial owners. Non-EU businesses may need to appoint a fiscal representative in some countries.
Step 3 — Submit the application. Applications are typically made online through the national tax authority's portal. Processing times range from a few days (Ireland, Netherlands) to several weeks (Italy, Germany). You cannot legally make zero-rated intra-community supplies until your VAT number is issued.
Step 4 — Receive your VAT number. Once approved, you will be issued a VAT number in the standard format for that country. This number should appear on all your invoices and will be verifiable through the VIES system.
Many businesses register too late, missing the point at which they were legally required to charge VAT. Retroactive liability — including VAT on sales you did not charge — can be very costly. Monitor your taxable turnover against each relevant threshold monthly.
Another frequent error is issuing zero-rated intra-community invoices before confirming that the customer's VAT number is valid. Always verify your customer's EU VAT number before applying the zero rate. If the number is invalid and your tax authority audits you, the VAT liability can fall on you as the supplier.
Once registered, you must submit periodic VAT returns (monthly or quarterly depending on the country), maintain VAT-compliant invoices for all supplies, and keep records for the statutory retention period (typically 7–10 years). You may also need to file EC Sales Lists and, if trading goods, Intrastat returns above certain thresholds.
Review our VAT compliance checklist for a full breakdown of ongoing obligations, or use our free VAT number checker to validate any EU VAT number instantly.