When and Where You Need VAT Registration in the EU

If you’re doing business in Europe (whether you’re an online seller, wholesaler, or service provider), VAT registration is one of the first compliance steps you need to take.

Value Added Tax (VAT) is a consumption tax applied to most goods and services sold in the European Union. When your business becomes liable for VAT in any EU Member State, you’re legally required to register for a VAT number. That number allows you to:

• Charge VAT correctly on your invoices.

• Submit periodic VAT returns.

• Claim VAT refunds (where applicable).

• Remain compliant with national tax authorities.

But, and this is very important, VAT registration isn’t one size fits all. Each EU country has its own rules, thresholds, forms, and languages. Some require registration from your first sale. Others only after you cross a specific sales threshold. Some mandate a fiscal representative if your business is based outside the EU, while others don’t.

If you’re selling into multiple countries, using fulfillment centers like Amazon FBA, or shipping goods under €150 to EU consumers, you may also need to consider IOSS, OSS, or local registrations. Each has its own process and filing requirements.

This complexity can be overwhelming. That’s where Global Trade Business comes in. We help companies like yours navigate VAT obligations across all 27 EU Member States. From determining where you need to register, to handling local applications, filing returns, and serving as your fiscal representative, we simplify every step of the journey. Our goal is to let you focus on selling while we handle compliance.

What Triggers the Need for VAT Registration?

Before you can charge VAT, file returns, or reclaim input tax in any EU country, you need to be VAT registered in that jurisdiction. However, knowing when you’re required to register can be tricky, especially if you’re selling across borders, storing goods in multiple locations, or operating outside the EU.

Well, here are the most common scenarios that trigger VAT registration requirements in the European Union:

1. Exceeding Country Specific VAT Registration Thresholds

Most EU countries set annual turnover thresholds for VAT registration. If your sales within that country exceed the threshold, you're obligated to register.

• For example, in France, the threshold for domestic businesses is €85,800, while in Italy, it's €65,000.

• However, for non EU businesses, many countries apply a €0 threshold, meaning VAT registration is required from your first taxable transaction.

• Importing Goods into the EU

If you’re importing products into any EU country and acting as the importer of record, you’ll typically need VAT registration in that country, even if you’re not physically present.

• This applies to direct imports for sale within the EU.

• You may also be responsible for customs VAT and import declarations.

Failing to register properly can result in delays at customs or goods being held by authorities.

3. Holding Stock in EU Warehouses (e.g. Amazon FBA)

If you store inventory in a fulfillment center or third party warehouse in the EU (even temporarily), you must register for VAT in the country where the goods are located.

This applies to:

• Amazon FBA sellers using programs like PAN EU.

• Retailers using third party logistics providers (3PLs).

Once goods are in storage, they are considered available for domestic sale, which creates a local tax obligation.

4. Distance Selling to EU Consumers

If you're selling cross border B2C goods from one EU country to customers in other Member States, and your total annual sales exceed €10,000, you must either:

• Register for the One Stop Shop (OSS) scheme and file one EU wide VAT return

• OR register separately for VAT in each country where your customers are located.

This rule affects many Shopify, WooCommerce, and Amazon sellers who ship directly from one EU warehouse to multiple countries.

5. Using EU Fulfillment Centers or Dropshipping Platforms

Even if you're not selling directly to EU customers, using EU based fulfillment or dropshipping networks can create VAT obligations.

• You may be deemed the importer and seller of record.

• The fulfillment center may trigger a “fixed establishment” rule, requiring local registration.

• Many platforms (like Zalando or Cdiscount) require a valid EU VAT number before onboarding you

• 
  

At Global Trade Business, we can help you assess your obligations and handle the entire registration process in one or multiple EU countries. 

Country by Country VAT Registration Thresholds

Each EU country sets its own rules. Here's a quick overview of when registration is triggered in popular jurisdictions.

Country	Local Threshold	Non EU Sellers
Germany	€0	Immediate
France	€85,800	Immediate
Italy	€65,000	Immediate
Spain	€35,000	Immediate
Netherlands	€20,000	Immediate

Special Rules for Non EU Businesses

If your company is based outside the European Union and you’re selling goods or services to EU customers, your VAT obligations are stricter than those of EU based sellers. While EU businesses can often wait until they hit a local threshold before registering, non EU businesses are usually required to register from the very first sale.

At Global Trade Business, we help non EU sellers understand and meet these stricter obligations. Failing to register can mean fines, customs delays, or blocked marketplace accounts.

Here’s what you need to be aware of.

1. You Often Need to Register Before You Start Selling

In most EU countries, if you're a non EU seller and plan to:

• Import goods into the EU

• Sell directly to EU consumers (online or offline)

• Hold inventory in EU warehouses

• Use EU fulfillment or dropshipping centers

…then you must register for VAT in advance. There’s no threshold. Your very first transaction is enough to trigger registration requirements.

Unlike EU based companies that may wait until sales reach €65,000 or €85,000 in some countries, non EU companies have immediate obligations.

2. Some Countries Require a Fiscal Representative

Several EU Member States require non EU businesses to appoint a fiscal representative in order to register for VAT.

A fiscal representative is a local tax agent who acts on your behalf. They’re responsible for:

• Submitting VAT returns.

• Managing communications with tax authorities.

• Ensuring compliance.

• In many cases, accepting joint liability for your VAT debts.

Countries that typically require a fiscal representative include:

• France

• Italy

• Poland

• Spain

• Greece

• Belgium

At Global Trade Business, we act as your fiscal representative in all required jurisdictions. This simplifies your operations and ensures that you remain compliant in countries where the rules are stricter for foreign sellers.

3. Use of IOSS for Low Value B2C Shipments (Below €150)

If you’re selling low value goods (under €150) directly to EU consumers, you may be eligible to use the Import One Stop Shop (IOSS) scheme.

The IOSS allows you to:

• Register for a single EU VAT number (no need to register in each country).

• Pre charge VAT at checkout, so there are no surprise fees for customers.

• Ensure faster customs clearance. Goods are declared and taxed before entry.

• File one monthly EU wide return through your appointed IOSS intermediary.

This is especially useful for online sellers, ecommerce brands, and marketplace vendors shipping from warehouses outside the EU (e.g. the US, UK, or Asia).

However, non EU businesses must appoint an official IOSS intermediary to access the scheme. This intermediary is liable for the proper collection and reporting of VAT.

Where You Must Register Based on Business Model

Your business model will heavily influence your VAT obligations. Let’s look at common cases:

1. ECommerce via Own Website

1. If you exceed €10,000 in cross border EU sales, you must register for OSS or register locally in each country.

2. You must collect VAT at the customer’s country rate.

1. Amazon FBA / Warehousing in EU

1. Mandatory VAT registration in every country where stock is stored (e.g. Germany, Czech Republic, Poland).

2. Many sellers use PAN EU FBA, which increases the number of required registrations.

1. Dropshipping from Outside the EU

1. VAT registration is usually required in the country of first import.

2. If you're acting as the importer of record, registration is typically needed immediately.

1. Digital Services

1. Register under MOSS or in each consumer’s country if not using MOSS.

2. Applies to software, elearning, downloads, etc.

Penalties for Late or Missing Registration

Failing to register on time can lead to serious consequences. This includes:

• Fines ranging from €1,000 to €50,000 depending on the country.

• Retroactive VAT charges (you’ll have to pay back VAT even if you didn’t collect it).

• Blocked imports or seized goods at customs.

• Marketplace account suspension.

How We Help You Register Quickly and Correctly

At Global Trade Business, we help companies like yours register for VAT in any EU country without delays or guesswork.

Our VAT registration service includes:

• Pre registration eligibility check.

• Preparation and submission of all forms.

• Liaising with tax authorities in local languages.

• Fiscal representation (where required).

• Ongoing support for returns, filings, and audits.

Understanding where and when to register for VAT in the EU is key to expanding internationally without headaches. Whether you’re storing goods, selling digital products, or shipping from abroad, the risks of ignoring VAT far outweigh the costs of getting it right.

Are you ready to Register or need help figuring out your EU VAT obligations? Request a free call with our experts or visit our FAQ page for more information.