Vat thresholds in countries
In many countries especially in EU if you make taxable supplies of goods or services below a certain annual limit , you might be exempt from tax. In such case you will not be required to register or collect taxes. Please note that these thresholds will change from country to country and some may not even have exemptions. Adding to these the rules or thresholds will be different for domestic and non-domestic sellers.
VAT Thresholds in 2022
| National currency | Registration or collection threshold | Domestic thresholds | Distance selling thresholds | Voluntary registration or collection | Minimum registration period | |
|---|---|---|---|---|---|---|
| Australia | AUD | R | 75000 | Yes | 1 year | |
| Austria | EUR | R | 35000 | 35000 | Yes | 5 years |
| Belgium | EUR | C | 25000 | 35000 | Yes | None |
| Bulgaria | BGN | 50000 | 70000 | |||
| Canada | CAD | R | 30000 | Yes | 1 year | |
| Chile | CLP | None | None | |||
| Colombia | COP | R | None | Yes | ||
| Croatia | HRK | 300000 | 270000 | |||
| Cyprus | EUR | 15600 | 35000 | |||
| Czech Republic | CZK | R | 1000000 | 1140000 | Yes | 1 year |
| Denmark | DKK | R | 50000 | 280000 | Yes | 2 years |
| Estonia | EUR | R | 40000 | 35000 | Yes | None |
| Finland | EUR | R | 10000 | 35000 | Yes | None |
| France | EUR | R | 82800 or 42900 or 33200 or 17700 | 35000 | Yes | 2 years |
| Germany | EUR | C | 22000 | 100000 | Yes | 5 years |
| Greece | EUR | C | 10000 | 35000 | Yes | 1 year |
| Hungary | HUF | C | 12000000 | ~14405300 | Yes | 1 year |
| Iceland | ISK | R | 2000000 | 2000000 | Yes | None |
| Ireland | EUR | R | None | 35000 | Yes | None |
| Israel | ILS | C | 100491 | No | None | |
| Italy | EUR | C | 65000 | 100000 | Yes | None |
| Japan | JPY | R | 10000000 | Yes | 2 years | |
| Korea | KRW | C | 30000000 | No | None | |
| Latvia | EUR | R | 40000 | 35000 | Yes | None |
| Lithuania | EUR | R | 45000 | 35000 | Yes | None |
| Luxembourg | EUR | C | 35000 | 100000 | Yes | None |
| Malta | EUR | 35000 or 24000 or 14000 | 35000 | |||
| Mexico | MXN | None | None | |||
| Netherlands | EUR | C | 20000 | 100000 | Yes | 3 years |
| New Zealand | NZD | R | 60000 | Yes | None | |
| Norway | NOK | R | 50 000 | Yes | 2 years | |
| Poland | PLN | R | 200000 | 160000 | Yes | None |
| Portugal | EUR | C | 12500 | 35000 | Yes | 5 years |
| Romania | RON | 300000 | 118000 | |||
| Slovak Republic | EUR | R | 49790 | 35000 | Yes | 1 year |
| Slovenia | EUR | R | 50000 | 35000 | Yes | 5 years |
| Spain | EUR | None | None | 35000 | ||
| Sweden | SEK | R | 30 000 | 320000 | Yes | 3 years |
| Switzerland | CHF | R | 100 000 | Yes | 1 year | |
| Turkey | TRY | R | None | |||
| United Kingdom | GBP | R | 85 000 | Yes | None |
Notes
- Australia. For taxi drivers, including chauffeur driven limousines, hire cars and sharing economy ride-share services, there is no registration threshold. The applicable registration threshold to not-for-profit organisations is AUD 150 000.
- Belgium. The registration threshold for Belgium does not apply to several sectors: real estate; hotels and restaurants; sale of used and waste materials. A number of specific supplies are also excluded from the application of the threshold: several supplies of new real estate, supplies of certain products subject to excise duties and undeclared and illicit activities
- Canada. The registration threshold does not apply to certain selected listed financial institutions; non-residents who enter Canada to make taxable supplies of admissions to a place of amusement, a seminar, an activity or an event; and persons who carry on a taxi or limousine business (which include a commercial ride-sharing business). These persons are required to register for and collect GST/HST. An alternative threshold applies to charities and public institutions. A charity or public institution is not required to register if either its revenue from worldwide taxable supplies is CAD 50 000 or less in a calendar quarter and over the last four consecutive calendar quarters, or its gross revenue in either of its two preceding fiscal years is CAD 250 000 or less
- Chile. All taxpayers are required to register and obtain a taxpayer’s identification number. However, small businesses, craftsmen and small service providers may be eligible for a special simplified regime according to which they account, for output VAT purposes, a monthly fixed amount based on an average level of earnings. This special regime has to be calculated by taking into account the earnings from the last 12 months and there is a threshold of 20 Monthly Tax Units (CLP 1 019 560 - USD 1 434). This simplified tax regime does not apply to legal entities but to individuals only. This system must be adopted for at least for 12 months after which the taxpayer can return back to the ordinary regime
- Colombia. For an individual to be considered “non-responsible” its gross income of the current or immediately preceding fiscal year must be below 3.500 TVU and also comply with other requirements set forth in section 437 of the Colombian Tax Code. The VAT exemption threshold is mentioned in Tax Value Units ("Unidad de Valor Tributario" - TVU). The VAT exemption threshold is 3.500 TVU and the value of the TVU in Colombian Pesos (COP) is set every year by decree; the value for 1 TVU is COP 36.308 for fiscal year 2021. The VAT registration threshold for individuals is therefore 3.500 x 36.308 = 127.078.000 COP. There is no VAT registration thresholds for incorporated businesses.
- Czech Republic. A taxable person that is not established in the Czech Republic should register immediately once he starts to provide any taxable supply within the territory of the country, except for supplies being subject to the reverse charge mechanism or to the mini one-stop shop (MOSS)
- Denmark. A higher threshold of DKK 170 000 (EUR 22 840) applies to the blind, and a threshold of DKK 300 000 (EUR 40 300) applies to the first sale of works of art by their creator or his successors in title. For the purposes of the latter exemption, the threshold of DKK 300 000 must not have been exceeded in the current or preceding year
- Finland. Where a business has exceeded the registration threshold of EUR 10 000, it must register and is subject to VAT, but a graduated relief is available until they reach a second threshold of EUR 30 000. On 1 January 2021, the registration threshold will be increased to EUR 15 000
- France. The VAT relief applies to businesses whose annual turnover does not exceed EUR 85 800 or when their turnover does has not exceeded EUR 94 300 the preceding calendar year (when the turnover has not exceeded EUR 85 800 the penultimate year). For supplies of services (except hotel accommodation and food and drink in restaurants), the annual turnover must not exceed EUR 34 400 or EUR 36 500 the preceding calendar year (when the turnover has not exceeded EUR 34 400 the penultimate year). For lawyers (in the furtherance of their regulated business), writers and artists, the turnover must not exceed EUR 44 500 (the threshold is EUR 18 300 for their supplies outside the normal framework of their affairs). Experimentally, for a period of five years, a specific threshold of EUR 100000 has been implemented in Guadeloupe, Martinique and La Réunion
- Germany. Taxpayers are relieved from VAT obligations if their annual turnover does not exceed EUR 22 000 and their expected turnover for the current calendar year will not exceed EUR 50 000
- Greece. If the annual turnover from taxable supplies is less than EUR 10 000, the business can voluntarily enter the Special Scheme for small businesses under which no VAT is collected. New businesses may also enter the Special Scheme upon registration. Farmers under the flat-rate scheme are not eligible to enter the Special Scheme for small businesses. Small businesses that have entered the Special Scheme will be obliged to enter the “normal” scheme and collect VAT from the moment they perform a taxable supply on account of which they exceed the threshold (and for the full value of that supply). In case the administrative period is less than a year, then the value of the taxable supplies for the purpose of determining whether the business may enter the Special Scheme during the next year is calculated on a proportional basis
- Ireland. The general turnover threshold for the supply of goods is EUR 75 000. Persons supplying goods liable at the reduced or standard rates which they have manufactured or produced from zero-rated materials must however register if their turnover is EUR 37 500 or more. The general turnover threshold for the supply of services is EUR 37 500. For persons supplying both goods and services where 90% or more of the turnover is derived from supplies of goods (other than of the kind referred to in the previous sentence) are subject to the threshold for the supply of goods applies
- Israel. Self-employed persons with annual revenue below NIS 100 491 are considered "Exempt Dealers". Some professions are not allowed to be Exempt Dealers: agronomist, architect, technician, private investigator, rabbinical attorney, dental technician, organizational consultant, management consultant, scientific consultant, economist, engineer, surveyor, bookkeeper, translator, insurance agent, lawyer, accountant or appraiser, chemical or medical laboratory owner, artistes, various others in show business, doctor, psychologist, physiotherapist, veterinary surgeon, dentist, driving school owner, school owner, real estate agent or dealer
- Italy. The micro-sized taxpayers’ scheme (“Regime forfetario”) applies to individual businesses if, in the previous year, they earned revenues or received remuneration, calculated per year, not exceeding EUR 65 000 (in addition, the gross expenses for employees must not exceed EUR 20 000). The regime does not apply to persons who are members of partnerships, professional associations or SRLs (limited liability companies) and are subject to the "regime di trasparenza" for income tax; persons who carry out sale of buildings or land or intra-EU supplies of new cars and trucks. Are also excluded, foreign businesses not established in Italy, except for those that are established in one of the EU Member States, or in a State party of the European Economic Area, and produce in Italy at least 75 percent of their total revenue
- Japan. Domestic and foreign businesses (both companies and individuals) whose taxable sales in Japan are less than 10 million yen, as well as new businesses of up to 2 years (except for the subsidiary of a certain large corporation) are exempt from JCT return. Exempted businesses can opt to be liable for Consumption Tax, in which case they shall remain liable for at least two years
- Luxembourg. Taxpayers established in Luxembourg are entitled to opt for the special scheme; the exemption only applies to goods and services supplied in Luxembourg. Taxpayers can opt out of the special scheme but have then to apply the normal VAT rules for at least five years
- Netherlands. The special scheme for small businesses applies to all businesses, irrespective of their legal form and including corporate businesses (e.g. foundations, private and limited companies)
- Norway. The higher threshold of NOK 3 000 000 applies for admission to sporting events. The higher threshold of NOK 140 000 applies to charitable institutions and organisations
- Poland. The registration threshold does not apply to taxpayers supplying (a) certain types of silver, gold, platinum, knives, cutlery, jewellery, non-hazardous metal waste, museum collections and coins; (b) goods subject to excise duty with a number of exceptions; (c) certain buildings, structures and their parts; (d) building land; (e) new means of transport. The threshold does also not apply to taxpayers supplying (a) legal services; (b) consulting and expert services with certain exceptions; (c) jeweller services and taxpayers not established in Poland. Supplies of certain goods bought remotely (e.g. online) such as computers, electrical household appliances, cosmetics, toilet preparations and parts and accessories to cars and motorcycles are excluded from the exemption
- Portugal. The collection threshold does not apply to commercial legal entities.
- Sweden. The threshold does not apply to taxable persons not established in Sweden, taxable persons voluntarily registered for VAT for rental of immovable property, trade with investment gold and artists
- Switzerland. The thresholds refer to the worldwide turnover. The higher threshold of CHF 150 000 applies to not-for-profit sports and cultural associations and to public interest institutions
- Turkey. Certain small individual taxpayers who are exempt from Individual Income Tax are also exempt from VAT