VAT in Europe

The Value-Added Tax is the central indirect tax within Europe imposed on taxable supplies of persons within its scope. This type of tax is one of the most significant revenue contributors to the public budget of the respective state where it is collected. 

VAT isn’t the only indirect tax in circulation. There are closely connected indirect taxes and duties imposed by domestic or international legislation. Taxable persons who operate cross-border should pay close attention to the triggering VAT registration momentum in the destination country of their supply.

Numerous taxable activities could trigger tax registration liability for domestic and non-resident economic operators that make the cross-border supply of goods and services. 

In most countries, domestic economic operators can leverage the small business scheme, which allows them to “remain” outside the scope of VAT requirements. However, this advantage is often exclusively provided to businesses with a place of establishment within the country.

Our concise but practical table provides up-to-date information about standard VAT rates and registration thresholds. The indicated registration thresholds are mainly applicable to local businesses; however, depending on the type of business activity, they could also apply to foreign persons. 

If you want to learn more about VAT rates, registration thresholds, and other relevant information concerning indirect tax requirements in respective countries, don’t waste your time – move to our Tax Map that is dedicated entirely to that under the VAT Guides.