EU VAT Registration & Returns

Selling internationally does not necessarily mean you need to register for VAT at your customers’ locations.  However, you will need to register VAT for any tax jurisdictions where you plan to store and ship inventory to/from.

For example, if your customers are based in Germany and you are shipping from the US, you will not necessarily need to register for VAT.  However, if you plan to store inventory in Germany which is then shipped to customers, you will need to register for VAT.

Some online marketplaces (e.g. Amazon) will also require a valid VAT registration to use their regional marketplaces.  For example, Amazon.de will require a valid German VAT number to be validated and linked to your business. 

Each jurisdiction has its own requirements for the registration process, and many tax authorities assess applications on a case-by-case basis, which means that timeframes can vary significantly. 

Successfully applying for VAT is subject to being able to provide the correct documentation requested to support your application.  In most cases, this will include evidence to prove the legitimacy of your business, your identity, and also evidence to show that you have complied with any domestic regulations for your business. 

Please refer to our country-specific FAQs for more information.

Generally, most tax authorities will require you to file VAT returns according to the filing frequency stipulated.  The filing frequency can vary depending on the jurisdiction.

Where there is a filing requirement, you will need to file VAT returns even if you have no trading activity – this is known as filing a zero or nil return.  It is usually not possible to ‘pause’ this requirement, other than formally deregistering your VAT. 

If you deregister your VAT, you will usually need to start the application process again if you want to apply for VAT in the future.

VAT numbers issued by an EU Member State are usually comprised of two numbers – a local VAT number, and a European VAT/GST number for cross-border trading within the EU.  For many EU Member States, these two numbers will in fact be the same.

A VAT/GST number can be recognised by the presence of a two-character country code prefix which indicates the EU Member State responsible for issuing the number. 

A VAT number can be deactivated for several reasons, depending on the tax authority that issued it. This may include failure to file VAT returns according to the required frequency, failure to pay VAT liabilities on time, or failure to respond to requests or inquiries from the tax authority.

Additionally, some tax authorities may deactivate a VAT registration if there has been consistently low or no trading activity for an extended period.