Every business operating within the supply chain should be registered for VAT within each country where they supply taxable goods and services, applying the reverse charge procedure when appropriate. Suppliers must charge VAT on their sales, maintain records of all transactions, and periodically file a return with their local tax authorities; ultimately paying over collected taxes to each government where applicable.
The member states of the European Union have very similar rules governing who is required to register for VAT & how often VAT returns are required. Most importantly, if you are engaged in a taxable activity across several member states, then you need to be registered for VAT in each of the affected countries.
Special rules apply to traders that supply solely digital services or physical goods that are dispatched & consumed outside of the EU. Those businesses have different filing obligations depending on where their customers reside.
Filing frequency is driven by how often you handle sales (e.g., daily, weekly, monthly), not necessarily your taxable turnover (e.g., 1M EUR/year). Each national authority publishes specific return frequencies; typically ranging from monthly to annual filings.
When You Need To Register For A VAT Identification Number In The European Union?
If your business makes any taxable supply within the EU, then you must register for VAT in each member state where you make a sale.
If your business does not make any taxable supply within the EU, you do not need to register for VAT or file a tax return with local authorities.
Who Is Eligible To Register For A VAT Identification Number In The European Union?
In short, every business operating within the European Union which makes any type of taxable supply is required to register for VAT in each country where they have customers.