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VAT Registration Threshold
The annual taxable turnover level above which a business is required to register for VAT in a given jurisdiction. Businesses below the threshold may choose to register voluntarily. For EU cross-border B2C digital services, the threshold is €10,000 per year across all EU member states combined.
A VAT registration threshold is the annual revenue level above which a business is legally required to register for VAT in a given country. Below the threshold, registration is optional — some businesses register voluntarily to reclaim input VAT. The threshold varies significantly by country and by the type of supply (domestic vs cross-border, goods vs services).
EU Threshold for Digital Services
For EU cross-border B2C digital services (SaaS, streaming, software, e-books), the threshold is €10,000 in total sales to EU consumers per calendar year — aggregated across all EU member states. Once you exceed €10,000 in EU B2C digital services sales, you must charge and remit VAT in each customer's country. The OSS scheme allows you to do this through a single registration rather than registering in each country. The €10,000 threshold was introduced in July 2021 as part of the EU VAT e-commerce package.
UK VAT Threshold
The UK VAT registration threshold is £90,000 in taxable turnover in a 12-month rolling period (as of 2024). This applies to UK-sourced revenue for UK-based businesses. For non-UK businesses selling digital services to UK consumers, there is no threshold — you must register from the first supply.
B2B vs B2C: Threshold Differences
The €10,000 EU threshold applies only to B2C sales (sales to private consumers without a VAT number). B2B sales to EU businesses using the reverse charge mechanism do not count toward the threshold — they are zero-rated in the seller's country and the buyer accounts for VAT in their own country. For a SaaS company selling primarily to businesses, the practical compliance path is VIES VAT number validation for B2B customers, and OSS registration once B2C EU consumer sales exceed €10,000.
Note
If a customer provides a valid VAT number (confirmed via VIES), they are B2B — reverse charge applies regardless of their billing location. If no VAT number is provided, treat the customer as B2C — charge VAT at the destination country rate. This is why accurate VAT number validation at checkout matters for determining the correct tax treatment.
EU member state domestic VAT registration thresholds
Domestic VAT thresholds apply to businesses established in that member state. They are distinct from the EU-wide €10,000 OSS threshold for cross-border digital services. For most SaaS companies selling cross-border, the €10,000 OSS threshold is the relevant number — not the domestic thresholds listed below.
| Country | Domestic threshold (local businesses) | Non-EU businesses |
|---|---|---|
| Austria (AT) | €35,000 / year | No threshold — register from first B2C sale |
| Belgium (BE) | €25,000 / year | No threshold |
| Bulgaria (BG) | BGN 100,000 (~€51,000) | No threshold |
| Croatia (HR) | €40,000 / year | No threshold |
| Cyprus (CY) | €15,600 / year | No threshold |
| Czech Republic (CZ) | CZK 2,000,000 (~€80,000) | No threshold |
| Denmark (DK) | DKK 50,000 (~€6,700) | No threshold |
| Estonia (EE) | €40,000 / year | No threshold |
| Finland (FI) | €15,000 / year | No threshold |
| France (FR) | €91,900 (services) | No threshold |
| Germany (DE) | €22,000 / year (Kleinunternehmer) | No threshold |
| Greece (GR) | €10,000 / year | No threshold |
| Hungary (HU) | HUF 12,000,000 (~€30,000) | No threshold |
| Ireland (IE) | €80,000 (services) | No threshold |
| Italy (IT) | €65,000 / year | No threshold |
| Latvia (LV) | €40,000 / year | No threshold |
| Lithuania (LT) | €45,000 / year | No threshold |
| Luxembourg (LU) | €35,000 / year | No threshold |
| Malta (MT) | €30,000 / year | No threshold |
| Netherlands (NL) | €20,000 / year (KOR small businesses) | No threshold |
| Poland (PL) | PLN 200,000 (~€46,000) | No threshold |
| Portugal (PT) | €13,500 / year (services) | No threshold |
| Romania (RO) | RON 300,000 (~€60,000) | No threshold |
| Slovakia (SK) | €49,790 / year | No threshold |
| Slovenia (SI) | €50,000 / year | No threshold |
| Spain (ES) | No general domestic threshold — register before first taxable supply | No threshold |
| Sweden (SE) | SEK 120,000 (~€10,500) | No threshold |
OSS threshold vs domestic registration threshold
| Threshold | Amount | Applies to | Mechanism |
|---|---|---|---|
| EU-wide OSS threshold | €10,000 / year | B2C digital services across all EU countries combined | One Stop Shop (OSS) |
| Individual domestic thresholds | Varies per country (see table above) | Businesses established in that country making domestic supplies | Local VAT registration |
| Non-EU businesses | No threshold | Non-EU companies selling B2C to EU consumers | Non-Union OSS or direct registration |
Note
Non-EU businesses have no registration threshold for EU B2C digital services. If your company is incorporated outside the EU and you sell a single digital service to an EU consumer, you are required to register for VAT — either via the Non-Union OSS scheme or directly in the customer's member state. The €10,000 threshold applies only to EU-established businesses.
Developer context: why thresholds matter for your billing system
For a SaaS billing system, thresholds affect two routing decisions. First, if your EU B2C revenue is below €10,000/year, you can apply your home country's VAT rate to all EU B2C customers and remit it locally — no OSS needed. Your billing system only needs to implement this more complex routing once you cross the threshold. Second, domestic thresholds matter if you have a local subsidiary in an EU country — once that entity's local revenue crosses the domestic threshold, it must register for local VAT independently of the group's OSS registration.
Frequently asked questions
What is the EU-wide OSS threshold for digital services?
€10,000 per calendar year in total B2C digital services revenue across all EU member states (excluding your home country's domestic sales). Once you exceed this, you must charge VAT at each customer's country rate and either register for OSS or register locally in each country where you have customers.
Does the €10,000 threshold apply per country or EU-wide?
EU-wide. It is the combined total of your B2C digital services sales to all EU customers (excluding your own member state). Selling €500 each to customers in 20 different EU countries counts as €10,000 total and triggers the threshold.
Do B2B sales (with reverse charge) count toward the threshold?
No. The €10,000 OSS threshold applies only to B2C sales. B2B cross-border sales using the reverse charge mechanism are zero-rated and do not count toward OSS threshold calculations.
What happens if I exceed the threshold mid-year?
You must register for OSS and start charging the correct country-specific VAT rate from the transaction that causes you to exceed the threshold. You cannot apply it retrospectively to previous transactions in the same year.
I'm a US company selling SaaS to EU consumers — what's my threshold?
Zero. Non-EU businesses have no registration threshold. You are required to register for EU VAT (typically via the Non-Union OSS scheme) from your first B2C sale to an EU consumer.
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