Do I Need to Register for VAT?
VAT registration requirements vary by country. Here are the key thresholds:
| Country | Registration Threshold |
|---|---|
| UK | £85,000 annual turnover |
| Germany | €22,000 annual turnover |
| France | €36,800 (services) / €91,900 (goods) |
| Italy | €65,000 annual turnover |
| Spain | None (mandatory registration) |
When to Register for VAT
You must register for VAT when:
- Your turnover exceeds the threshold
- You expect to exceed the threshold within 30 days
- You sell to other EU countries (EU VAT rules)
- You choose voluntary registration
Benefits of Voluntary VAT Registration
- Claim back VAT on business purchases
- Appear more professional to clients
- Prepare for growth before hitting thresholds
- International trading becomes easier
How to Charge VAT on Invoices
Your VAT invoice must include:
- Your VAT registration number
- Invoice date and unique number
- Customer details
- Description of goods/services
- Net amount, VAT amount, and gross total
- VAT rate applied
VAT Filing Deadlines
Most countries require quarterly VAT returns:
- UK: One month after quarter end
- Germany: 10th of following month
- France: 19th of following month
- Italy: 16th of following month
Record Keeping Requirements
Keep records for at least 6 years:
- Sales invoices
- Purchase invoices
- Import/export documents
- Credit notes
- Bank statements
