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 EUs 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

GUIDANCE WARNING: Please note that the above guidelines do not constitute tax, legal, or other professional advice and must not be used as such. It is the sole responsibility of all Prodigi clients to comply with all legal and sales tax requirements for issuing sales tax or VAT invoices in respect to your sales transactions. If you are unsure as to what the contents of an invoice you issue to your customers should be, we suggest that you contact your tax advisor. Prodigi cannot assist you with any legal or tax advice as we’re not accountants or legal experts, and we stress that none of the above may be taken as professional advice.