EU VAT registration thresholds for foreign businesses

24 December 2019

From January 2025, EU member states have agreed on providing non-resident businesses with the same VAT registration thresholds as resident suppliers. 

At present, non-resident businesses selling in an EU country have to VAT register from the first sale that they make. This is due to EU member states applying VAT registration thresholds to only resident businesses. In an effort to remove the unfair advantage this gives to resident companies over non-resident providers, EU member states have agreed to extend the threshold to all sellers from 2025.

When introduced, the registration thresholds will not be able to exceed €85,000 per year and foreign companies can only benefit from this if their total sales across the EU are below an amount of €100,000.

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