To help reduce the administrative burden on companies there are national VAT registration thresholds set by each individual country in the European Union.
The basic rules are as follows:
- Retailers may sell to private individuals in other EU States under their local VAT number, charging their home VAT rate. For Prodigi, this means adding UK at 20% to our invoices.
- Once retailers pass each respective EU country’s distance selling annual VAT threshold, they must register as a non-resident VAT trader in that country.
- They then can continue to sell, but must charge the local VAT rate if trading in that country.
If a non-EU based company is selling below these thresholds, it does not need to register for VAT.
Once over these limits within the same calendar year, it must apply for a VAT number. Each member country of the EU is free to set its own distance selling registration threshold.
The following table outlines the 2019 limits for each country.
| Austria | 35,000€ |
| Belgium | 35,000€ |
| Bulgaria | BGN 70,000 |
| Croatia | HRK 270,000 |
| Cyprus | 35,000€ |
| Czech Republic | CZK 1,140,000 |
| Denmark | DKK 280,000 |
| Estonia | 35,000€ |
| Finland | 35,000€ |
| France | 35,000€ |
| Germany | 100,000€ |
| Greece | 35,000€ |
| Hungary | HUF 8,800,000 |
| Ireland | 35,000€ |
| Italy | 35,000€ |
| Latvia | 35,000€ |
| Lithuania | 35,000€ |
| Luxembourg | 100,000€ |
| Malta | 35,000€ |
| Netherlands | 100,000€ |
| Norway | N/A |
| Poland | PLN 160,000 |
| Portugal | 35,000€ |
| Romania | RON 118,000 |
| Slovakia | 35,000€ |
| Slovenia | 35,000€ |
| Spain | 35,000€ |
| Sweden | SEK 320,000 |
| Switzerland | N/A |
| United Kingdom | £70,000 |
Once VAT registered in a new country, there will be EU VAT compliance regulations to follow. These will include ensuring invoices are issued according to the local laws. Regular VAT returns will also have to be submitted to the respective countries.
In addition to VAT returns, retailers may also be required to complete separate Intrastat filings (detailing the movement dispatched goods from their home state to the state of their customer) once the value of the goods goes over a certain threshold.
The Intrastat thresholds by country are as follows:
| Country | Arrivals simplified | Full | Dispatches simplified | Full |
| Austria | €750,000 | €12 million | €750,000 | €12 million |
| Belgium | €1 million | €25 million | €1.5 million | €25 million |
| Bulgaria | BGN 280,000 | BGN 11.7 million | BGN 460,000 | BGN 5.6 million |
| Croatia | - | HRK 1.2 million | - | HRK 2.2 million |
| Cyprus | €55,000 | €5.8million | €160,000 | €1.85 million |
| Czech Republic | CZK 12 million | - | CZK 12 million | - |
| Denmark | DKK 5 million | - | DKK 6.7 million | - |
| Estonia | €130,000 | €6 million | €230,000 | €5.5 million |
| Finland | €600,000 | - | €600,000 | - |
| France | - | €460,000 | - | €460,000 |
| Germany | €500,000 | €46 million | €800,000 | €38 million |
| Greece | €90,000 | - | €150,000 | - |
| Hungary | HUF 100 million | HUF 14 billion | HUF 170 million | HUF 5 billion |
| Ireland | €635,000 | - | €500,000 | - |
| Italy | - | - | - | - |
| Latvia | €100,000 | €4 million | €200,000 | €2.5 million |
| Lithuania | €170,000 | €6 million | €280,000 | €3 million |
| Malta | - | €700 | - | €700 |
| Netherlands | €1 million | - | €800,000 | - |
| Poland | PLN 2 million | PLN 93 million | PLN 4 million | PLN 50 million |
| Portugal | €250,000 | €6.5 million | €350,000 | €5 million |
| Romania | RON 900,000 | RON 20 million | RON 900,000 | RON 10 million |
| Slovak Republic | - | €400,000 | - | €200,000 |
| Slovenia | €200,000 | €9 million | €120,000 | €4 million |
| Spain | - | €400,000 | - | €400,000 |
| Sweden | SEK4.5 million | - | SEK9 million | - |
| United Kingdom | £250,000 | £24 million | £1.5 million | £24 million |
Also refer to our blog post on VAT and print on demand.