VAT registration thresholds in different countries

EU - VAT registration thresholds

VAT Registration Thresholds. Which limits are there for VAT registration in different countries? When must I VAT-register a company in the UK? When does the company need to be registered for VAT in Germany? Which country has the highest VAT registration threshold?
[Read about VAT registration thresholds in Swedish instead]

Which country has the highest VAT registration threshold?

Singapore, which in many studies can be found at the top of the hill when it comes to business friendliness, has an almost unbelievably high VAT registration limit of the equivalent of 600000 Euro.

Other small business-friendly countries are the UK, Russia and Switzerland, all of which allow small business owners to grow without interference from bureaucratic red tape until they reach about 1 million in turnover. Other exemplary countries which deserve praise for allowing small businesses to avoid tax hassles during the start-up year(s) are Italy, Australia, Latvia, Lithuania, Romania, Slovakia, Slovenia, Ireland, Poland, Czech Republic, and Thailand.

Table with VAT registration thresholds

Here you can see the different thresholds for VAT registration in different countries around the world. EU pretends to have a single common market but still has incredibly different limits for VAT registration, which means that the conditions for small businesses around Europe are very different. A small business owner from the UK, Italy or Romania, which doesn’t have to be registered for VAT, can hold much lower prices on the very international market of today because they do not have to sell with VAT. If you own a business in Sweden, Spain or Netherlands and sell internationally and/or on the net your prices will be much higher than your competitors. Here in the table, you can see the VAT registration limits of Europe and some selected countries around the world:

Singapore 657000 6100000 1000000 SGD
United Kingdom 115300 1070000 83000 GBP
Russia 108000 1000000 8000000 RUB, 2M/Q.
Switzerland  97100 903000 100000 CHF
Italy 65000 620000
Romania 65000 620000 287000 ROL
Australia 51000 474000 75000 AUD
Latvia 50000 465000
Slovakia 50000 465000
Slovenia 50000 465000
Thailand 46000 430000 1800000 THB
Lithuania 45000 418500
Ireland 37500 349000 75K Products/37,5K Services
Poland 37300 347000 150000 PLZ
Check republic 36400 339000 1000000 CZK
France 32600 303000
Croatia 30400 283000 230000 HRK (300K 2017)
Austria 30000 279000
Bulgaria 25500 237000 50000 BGL
Luxembourg 25000 232500
Belgium 25000 232000
Hungary 19900 185000 6000000 HUF
Germany 17500 163000
Estonia 16000 149000
Cyprus 15600 145000
Portugal 12500 116000
Finland 15000 15000 (changed 2021)
Greece 10000 93000
Iceland 8000 74000 1000000 ISK
Denmark 6700 62000 50000 DKK
Norway 5900 55000 50000 NOK
China 30000 38000 30000 CNY
Sweden 3200 30000 30000 SEK
Netherlands 1345 12500
Malta 0 0
Spain 0 0

Malta and Spain extinguish themselves with nil or zero VAT registration threshold, closely followed by Netherlands and Sweden. This is bad for small business growth, which in turn is bad for job creation since most new jobs are produced in small companies these days. The Swedish Tax Authorities even proposed a lower limit for registration of 90000 SEK some years ago, but politicians rejected it because of fear of losing tax income. They didn’t understand the value of the lost jobs that were never created.. and the tax income from those companies and the people they would have employed..

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