EU tax reference

Countries within the European Union and in the United Kingdom charge a value-added tax, or VAT. EU VAT is calculated according to destination-based sourcing, which means that tax is charged to a customer based on their location. The minimum value of this tax is 15%, but each member country sets their own rates.

A VAT number, also referred to as a value-added tax identification number (VATIN), is required to charge VAT. It's provided to you by a member country's tax authority after you register with them.

Tax reference for EU member countries and the United Kingdom

Typically, you need to register with the tax authorities in your own country to charge VAT if you intend to sell to other countries in the EU. If you have a significant business presence in another country in the EU, or pass a certain threshold of sales to that country, then you might need to register in that country as well. What constitutes this threshold in each country can differ.

Starting July 1, 2021, distance selling thresholds for individual countries no longer apply. Instead, a single distance selling threshold will apply for the entire EU.

  • For customers in your home country, your local VAT rate is charged.
  • For customers in EU countries outside your own, the rate is determined by whether you exceed the registration threshold.
    • If your combined sales to all other EU member states are less than 10,000 EUR in total, then you can choose to charge your home country’s VAT rate in other EU countries and remit VAT to your home country’s government. If you choose to charge your home country's VAT rate for all EU sales, then you might need to apply for the micro-business exemption with your local tax authority. If you're not sure whether you need to apply, then consult with your local tax authority or a tax professional.
    • If your combined sales to all other EU member states are equal to or greater than 10,000 EUR in total, then you charge the VAT rate in your customer's location for all sales to other countries.

A new One-Stop Shop scheme (OSS) is available starting July 1, 2021. The OSS scheme allows merchants to collect and remit VAT for sales in all EU member states, rather than registering for each member state individually.

Europe

List of EU member countries
Austria Belgium Bulgaria Croatia Cyprus
Czech Republic Denmark Estonia Finland France
Germany Greece Hungary Ireland Italy
Latvia Lithuania Luxembourg Malta Netherlands
Poland Portugal Romania Slovakia Slovenia
Spain Sweden

United Kingdom

United Kingdom
United Kingdom

Austria

Tax information for Austria.
Member country tax website Distance selling VAT threshold
Republic of Austria Federal Ministry of Finance 35,000 EUR

Belgium

Tax information for Belgium.
Member country tax website Distance selling VAT threshold
Federal Public Service - Finance 35,000 EUR

Bulgaria

Tax information for Bulgaria.
Member country tax website Distance selling VAT threshold
National Revenue Agency of the Republic of Bulgaria BGN 70,000

Croatia

Tax information for Croatia.
Member country tax website Distance selling VAT threshold
Republic of Croatia Ministry of Finance - Tax Administration HRK 270,000

Cyprus

Tax information for Cyprus.
Member country tax website Distance selling VAT threshold
Cyprus Tax Department 35,000 EUR

Czech Republic

Tax information for Czech Republic.
Member country tax website Distance selling VAT threshold
Czech Republic Financial Administration CZK 1,140,000

Denmark

Tax information for Denmark.
Member country tax website Distance selling VAT threshold
Danish Tax Agency DKK 280,000

Estonia

Tax information for Estonia.
Member country tax website Distance selling VAT threshold
Republic of Estonia Tax and Customs Board 35,000 EUR

Finland

Tax information for Finland.
Member country tax website Distance selling VAT threshold
Finnish Tax Administration 35,000 EUR

France

Tax information for France.
Member country tax website Distance selling VAT threshold
France Ministry of Finance 35,000 EUR

Germany

Tax information for Germany.
Member country tax website Distance selling VAT threshold
German Federal Tax Office 100,000 EUR

Greece

Tax information for Greece.
Member country tax website Distance selling VAT threshold
Independent Authority for Public Revenue 35,000 EUR

Hungary

Tax information for Hungary.
Member country tax website Distance selling VAT threshold
National Tax and Customs Administration HUF 8,800,000

Ireland

Tax information for Ireland.
Member country tax website Distance selling VAT threshold
Irish Tax and Customs 35,000 EUR

Italy

Tax information for Italy.
Member country tax website Distance selling VAT threshold
Italian Agency of Revenue 35,000 EUR

Latvia

Tax information for Latvia.
Member country tax website Distance selling VAT threshold
State Revenue Service of Latvia 35,000 EUR

Lithuania

Tax information for Lithuania.
Member country tax website Distance selling VAT threshold
State Tax Inspectorate Under the Ministry of Finance of the Republic of Lithuania 35,000 EUR

Luxembourg

Tax information for Luxembourg.
Member country tax website Distance selling VAT threshold
Luxembourg Inland Revenue 100,000 EUR

Malta

Tax information for Malta.
Member country tax website Distance selling VAT threshold
Commissioner for Revenue 35,000 EUR

Netherlands

Tax information for Netherlands.
Member country tax website Distance selling VAT threshold
Tax and Customs Administration 100,000 EUR

Norway

Tax information for Norway.
Member country tax website Distance selling VAT threshold
The Norwegian Tax Administration Not applicable

Poland

Tax information for Poland.
Member country tax website Distance selling VAT threshold
National Revenue Administration PLN 160,000

Portugal

Tax information for Portugal.
Member country tax website Distance selling VAT threshold
Portuguese Tax and Customs Authority 35,000 EUR

Romania

Tax information for Romania.
Member country tax website Distance selling VAT threshold
National Agency for Fiscal Administration RON 118,000

Slovakia

Tax information for Slovakia.
Member country tax website Distance selling VAT threshold
Slovak Republic Financial Administration 35,000 EUR

Slovenia

Tax information for Slovenia.
Member country tax website Distance selling VAT threshold
Financial Administration of the Republic of Slovenia 35,000 EUR

Spain

Tax information for Spain.
Member country tax website Distance selling VAT threshold
Spanish Tax Agency 35,000 EUR

Sweden

Tax information for Sweden.
Member country tax website Distance selling VAT threshold
Swedish Tax Agency SEK 320,000

United Kingdom

Tax information for the United Kingdom.
Member country tax website Distance selling VAT threshold
HM Revenue and Customs Not applicable.

Learn about UK taxes and Brexit.

One-Stop Shop schemes

Starting July 1st, 2021, One Stop Shop schemes are available that allow merchants to simplify charging and remitting VAT for sales to EU member states.

  • The One-Stop Shop (OSS) scheme, also called the Union OSS, is for merchants within the EU whose sales to other EU member states require them to charge and remit VAT based on destination countries. After July 1, 2021, you can use the OSS scheme if your annual sales to all other EU member states are equal or greater than 10,000 EUR.

    If your annual sales to all other EU member states are less than 10,000 EUR, then you can either use the micro-business exemption to charge your local VAT rate, or register for the OSS if you want to charge VAT based on the location of your customers.

  • The Import One-Stop Shop (IOSS) scheme, also called the Non-Union OSS, is for merchants outside the EU that sell to customers located in any EU member state. After July 1, 2021, you can use the IOSS scheme if you are located outside the EU and sell to customers located in an EU member state, and you don't want your customers to be charged tax upon delivery.

    Using IOSS, you can choose to collect VAT on orders equal to or less than 150 EUR at checkout so that your customers don't pay taxes upon delivery.

Charge, report, and remit VAT with the OSS

Steps:

  1. Register for the OSS with the tax authority in your own country.
  2. Charge VAT based on the destination country, instead of using the VAT rates for your location.
  3. Report sales and remit VAT to the OSS, instead of registering for a VAT number with individual EU member states.

Registering for the OSS is optional. If you don't register for the OSS, then you continue to register for VAT in individual EU member states.

Charge, report, and remit VAT with the IOSS

Currently, if you're located outside of the EU and you sell to customers within the EU, then you aren't required to collect VAT on orders under 22 EUR. After July 1, 2021, orders equal to or less than 150 EUR have VAT applied to them, and orders greater than 150 EUR have import VAT and duties applied.

You aren't required to collect VAT regardless of the order amounts. Using IOSS, you can choose to collect VAT on orders equal to or less than 150 EUR at checkout so that your customers don't pay taxes upon delivery.

Steps:

  1. Register for the IOSS with the tax authority in an EU member state.
  2. Charge VAT based on the destination country.
  3. Report sales and remit VAT to the IOSS.

Registering for the IOSS is optional. If you don't charge these taxes during the checkout process, then your customer pays them to the shipping carrier upon delivery.

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