This content is for informational purposes only and does not constitute legal advice. We recommend that you consult a qualified legal professional for any legal advice or questions you may have.
If you’re running a business and selling products to customers in countries that apply Value Added Tax (VAT), such as those in the European Union (EU), the United Kingdom (UK), Norway, Switzerland, and many others, you may need to charge VAT. Whether or not you have to depends on where you’re located, where your customers are, and how much you sell.
When do I need to charge VAT?
You’ll usually need to charge VAT if:
- You’re registered as a tax payer in your country or another country
- You meet the local sales threshold for VAT registration
- You sell to customers in a country where you’re registered
- You store branding inventory in a country
Each country sets its own rules about when businesses need to register and collect VAT.
What happens after I register?
Once registered for VAT, you need to:
- Add VAT to your prices where required
- Show VAT on your invoices
- Submit regular VAT reports and payments to the tax authority
You might also be able to reclaim some of the VAT you pay on business expenses.
If you’re not sure whether you need to charge VAT, it’s best to talk to a tax professional.