VAT Threshold
Category: tax
The sales level at which a business must register for VAT, varying by country.
The VAT threshold is the level of taxable sales at which a business must register for VAT in a given country. Thresholds vary widely: the UK has a £90,000 threshold (2024/25), Germany has no threshold (registration required from the first sale), and Australia requires GST registration at AUD 75,000. Exceeding the threshold triggers mandatory registration, charging, and filing obligations.
Examples
- • A UK seller whose VAT-taxable turnover exceeds £90,000 in any rolling 12-month period must register for UK VAT with HMRC.
- • A seller shipping goods to Germany via FBA must register for German VAT from the first euro of sales, as there is no German VAT threshold for non-resident sellers.
- • An overseas seller reaching AUD 75,000 in Australian sales within a 12-month period must register for Australian GST.