Do I need to register as a VAT payer in each country I sell in?

Written by

Sabrina Barnes

VAT (Value Added Tax) is a sales tax that applies across the European Union (EU). Since July 2021, the EU has introduced the One Stop Shop (OSS) system, which makes VAT reporting much easier. Instead of registering as a VAT payer in every EU country you sell in, you can report and pay VAT in just one country through the OSS.

Note

If you’re unsure about your VAT obligations, it’s always best to check with a professional tax advisor.

If you’re based in the EU

You should register for VAT in the country where your business is established. Once you reach your country’s domestic sales threshold, VAT registration becomes mandatory.

If you also sell to customers in other EU countries, keep track of your cross-border sales. When your total cross-border sales exceed 10,000 EUR in a calendar year, you must register for the OSS scheme or register as a VAT payer in the countries of destination of the goods.

If you’re based outside the EU

You can choose to register in one EU country; ideally, the one where you have the most sales. If you’re importing goods into the EU and selling to EU customers, the Import One Stop Shop (IOSS) scheme may apply. The IOSS makes it easier to declare and pay VAT on imports.

Learn more about how the IOSS scheme works at Printify here.