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 applied across the European Union (EU). Since July 2021, the EU’s One Stop Shop (OSS) system has simplified this process significantly. Rather than registering as a VAT payer in every single country where you have customers, the OSS allows you to report and pay VAT in just one member state

Note

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

If your business is 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 your business is 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.