VAT Registration Thresholds by Country 2025

What is a VAT Registration Threshold?

A VAT registration threshold is the minimum annual taxable turnover at which a business is legally required to register for VAT and start charging it to customers. Businesses below this threshold can choose to register voluntarily.

Why Do Thresholds Vary So Much?

Each country sets its own threshold based on economic policy, administrative capacity, and the size of its small business sector. The UK has one of the highest thresholds in the world at £90,000, while many EU countries set theirs much lower — Greece and Portugal, for example, require registration from €10,000 and €14,500 respectively.

What Happens if You Exceed the Threshold?

Once your turnover exceeds the threshold, you must register for VAT within a set period (usually 30 days in the EU, 30 days in the UK). Failure to register on time can result in penalties and backdated VAT charges. After registration, you must charge VAT on your sales and file regular VAT returns.

All thresholds shown are for 2025 and are based on annual taxable turnover. Always verify with official government or tax authority sources before making business decisions.