VAT Registration
Category: tax
The process of registering with a tax authority to collect and remit VAT in a given jurisdiction.
VAT registration is the process of registering a business with the relevant tax authority to collect and remit VAT. Registration is mandatory once sales exceed the country's VAT threshold, or immediately for non-resident sellers in countries like Germany that have no threshold. After registration, the business receives a VAT number, must charge VAT on sales, file periodic returns, and maintain proper records.
Examples
- • A non-resident seller using Amazon FBA in Germany must register for German VAT before making the first sale, as there is no threshold for foreign sellers.
- • UK businesses must register for VAT with HMRC once their taxable turnover exceeds £90,000 in a rolling 12-month period.
- • Sellers can register for EU OSS to consolidate VAT reporting across all EU member states into a single quarterly return.