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VAT registration guide: How to register for VAT in the UK and EU
Learn how to register for VAT, understand OSS and IOSS schemes, SVR rules, and VAT compliance requirements for businesses exporting to Europe.
If you are an Indian exporter selling goods in the UK or other European marketplaces, Value Added Tax (VAT) registration is a legal requirement. This guide covers everything you need to know: what VAT is, when to register, how the process works, applicable rates, available EU schemes, and how to stay compliant. Whether you need to register before your first sale or once you cross a threshold depends on your selling model, where your goods are stored, and which markets you sell in.
What is VAT (Value Added Tax)?
VAT stands for Value Added Tax, a consumption tax applied at each stage of the supply chain. Sellers add it to the price of goods they sell and pass it on to national tax authorities when filing returns. The end consumer ultimately pays VAT as part of the purchase price. If you sell goods in any European country, you are likely required to register for VAT in each country you sell in. It is your responsibility as a seller to ensure VAT compliance.1
What is VAT number and how does it work?
A VAT number is a unique identifier issued to your business by the tax authority of each country where you register for VAT. It is used to identify your tax status, confirm the place of taxation, and must be included on all VAT invoices you issue to customers.
Key things to know for Indian exporters:
Key things to know for Indian exporters:
● Every EU country issues its own VAT number. Selling or storing goods in multiple EU countries may require a separate registration in each.
● EU VAT numbers begin with the code of the country followed by digits or characters.
● UK VAT numbers are issued by HMRC in the format GB followed by digits, separately from the EU system.
● You can verify EU VAT numbers using the VIES tool provided by the European Commission.2
When do you need VAT registration?
Your VAT obligation depends on where your business is based, where your goods are stored, and your sales volume. Here is what Indian exporters need to know:
For the UK:
● You must register for VAT if your total taxable turnover has exceeded £90,000 in the last 12 months, or if you expect it to exceed that threshold in the next 30 days.
● If your business is based outside the UK and you supply or expect to supply any goods or services to UK customers, you must register regardless of your turnover.
● Voluntary registration is also possible if your turnover is below £90,000; this can be beneficial if you want to reclaim input VAT on business expenses.
● VAT is payable from the date HMRC registers you, not from the date you apply.3
For the EU:
● As a non-EU seller, you must charge VAT from your first taxable B2C sale in any EU country. There is no minimum threshold.
● If you store goods in multiple EU countries, you will need a separate VAT registration in each country where goods are stored.
● To make multi-country VAT easier, use the Import One-Stop Shop (IOSS) or One-Stop Shop (OSS) schemes. These let you report all EU sales through one simple portal instead of filing separately everywhere.
● IOSS covers imported goods valued at €150 or less. VAT is collected at checkout for faster customs clearance.
● OSS covers digital services and goods already located within the EU.4
How does Value Added Tax (VAT) work?
VAT is charged at each stage of the supply chain. As a seller, you collect VAT from customers (output VAT) and pay VAT on your own purchases (input VAT) — you remit only the difference to the tax authority. If your input VAT exceeds your output VAT, you may be eligible for a refund. For example: an Indian exporter ships home textiles to the UK, pays £20 in import VAT on entry, then sells the goods to a UK customer charging £30 in output VAT, so only £10 (£30 minus £20) is remitted to HMRC.5
VAT rates across the UK and Europe
VAT rates vary across European countries. While the EU mandates a minimum standard rate of 15%, each country has the freedom to set its own rate above this. Countries can also apply one or two reduced rates, but only to specific goods or services listed in the EU VAT Directive. The standard rate applies to all non-exempt goods and services.6
Country
Code
Standard VAT Rate
The UK
GB
20%
Germany
DE
19%
France
FR
20%
Spain
ES
21%
Italy
IT
22%
Poland
PL
23%
Sweden
SE
25%
The Netherlands
NL
21%
Turkey
TR
20%
Other EU member states
Standard VAT rates across the remaining EU member states range from 17% (Luxembourg) to 27% (Hungary). Reduced rates apply to categories like food, medicines, and books, though specifics vary by country.7
The benefits of having VAT number
Having a VAT number is not just about compliance, it also unlocks practical advantages that can improve your cost structure and credibility in European markets. Here are some of they key benefits of VAT number:
Legal compliance
Registration is a legal requirement in most cases. Selling without a required VAT number can result in backdated liabilities, penalties, and suspension of marketplace selling privileges.
Ability to collect VAT
Only VAT-registered businesses can legally charge VAT and issue valid VAT invoices which are required by buyers across Europe.
Input credit benefits
Registration allows you to reclaim VAT paid on business expenses including import VAT, storage, and other deductible costs, thereby, reducing your overall cost base.
Business credibility
A valid VAT number signals compliance and professionalism, particularly in B2B markets where buyers need valid VAT invoices to reclaim their own input tax.8
How to register for VAT: Step-by-step process
Follow these general steps to register for VAT:
Step 1: Check VAT eligibility
Before you start selling, identify which countries require VAT registration based on where your goods are stored and where your customers are located. If you are an Indian exporter storing goods in European fulfilment centres or making B2C sales to EU or UK customers, VAT registration is a legal requirement.
Step 2: Gather required documents
Prepare your business registration certificate, proof of address, bank details, and details of goods and intended markets. Non-EU sellers may also need to appoint a fiscal representative in some EU countries.
Step 3: Apply for VAT registration online
For UK: Apply via HMRC's VAT registration portal.
For EU: Register through the national tax authority portal of the EU country where your goods are stored. If you are making B2C sales across multiple EU countries, you can instead register for OSS or IOSS through a single EU member state. This allows you to report and pay VAT for all your EU sales through one portal, rather than filing separately in each country.
For EU: Register through the national tax authority portal of the EU country where your goods are stored. If you are making B2C sales across multiple EU countries, you can instead register for OSS or IOSS through a single EU member state. This allows you to report and pay VAT for all your EU sales through one portal, rather than filing separately in each country.
Step 4: Receive your VAT number
UK applications typically take 30 working days. EU timelines vary by country, from a few days to several weeks depending on where you register.
Step 5: Start charging and filing VAT
Once registered, charge the applicable VAT rate on all relevant sales, issue VAT-compliant invoices, and file returns at the required frequency.9
VAT registration for online sellers and marketplace businesses
VAT obligations differ depending on how you sell. Here is a simple breakdown:
Online sellers (direct sales via your own website):
You are fully responsible for registering for VAT, charging the correct rate, and filing your own returns in each country where you sell or store goods.
Marketplace sellers (selling via platforms like Amazon):
When you sell through an online marketplace as a non-UK or non-EU seller, the marketplace is often treated as the deemed supplier, meaning it collects and remits VAT to the tax authority on your behalf for qualifying transactions. However, you are still required to register for VAT in countries where your goods are stored.
For B2B sales, VAT is generally not charged by the marketplace, instead, the buyer accounts for VAT themselves through the reverse charge mechanism, provided they supply a valid VAT registration number.10
For B2B sales, VAT is generally not charged by the marketplace, instead, the buyer accounts for VAT themselves through the reverse charge mechanism, provided they supply a valid VAT registration number.10
EU VAT schemes: OSS and IOSS explained
Here’s a simple explanation of OSS and IOSS:
One Stop Shop (OSS)
OSS allows sellers to register for VAT in a single EU member state and file one quarterly return covering all EU cross-border B2C sales, instead of registering separately in each country.
● Who it's for: EU and non-EU sellers making cross-border B2C sales within the EU
● Threshold: Required once cross-border B2C EU sales exceed €10,000 per year
● How it works: You apply the VAT rate of the customer's country and report all EU sales in one return. The tax authority distributes the VAT to each relevant member state.
Import One Stop Shop (IOSS)
IOSS is specifically for non-EU sellers (including Indian exporters) shipping low-value goods directly to EU consumers.
● Who it's for: Non-EU sellers importing goods valued at €150 or less per consignment
● How it works: VAT is collected at checkout and remitted through a single monthly IOSS return. Goods clear customs faster, and customers see the final VAT-inclusive price upfront.
● Note: Non-EU sellers may need to appoint an EU-based intermediary to register for IOSS.11
VAT registration online: Key things to know
Registering for VAT online is straightforward but there are a few important rules to follow before registration:
● VAT registration in the UK is fully online via HMRC, free of charge, and typically completed within 30 days.
● In some EU countries, non-EU businesses must appoint a fiscal representative. Check requirements for each country before registering.
● Do not charge VAT until officially registered. Collecting VAT without a valid number is non-compliant.
● If you register late, you must pay VAT on all sales from the date you should have registered, plus penalties and interest.12
VAT after registration: Compliance and filing
Once registered, your ongoing obligations include:
● Issuing VAT invoices showing your VAT number, applicable rate, and amount charged.
● Filing VAT returns: Quarterly in the UK and quarterly or monthly in EU countries depending on sales volume
● Paying VAT to the relevant authority by each filing deadline
● Maintaining records in line with record-keeping rules for UK and EU.13
Common VAT registration mistakes to avoid
Here are some common mistakes to avoid while registering for VAT:
● Registering too late, resulting in backdated liabilities and penalties.
● Using the wrong VAT rate. Always check the applicable rate for your specific product category and destination country.
● Not appointing a fiscal representative where required.
● Ignoring OSS and IOSS. Selling across multiple EU countries without using these schemes can result in needing to register in each country separately.
● Mismatching VAT numbers.14
VAT registration costs and penalties
VAT registration itself is free of charge in both the UK and EU. However, non-compliance can be costly. Late registration results in backdated VAT liabilities means you owe VAT on all sales from the date you should have registered, even if you did not charge customers at the time. Along with late registration penalties, your interest could also accrue from the first day of non-compliance. Professional fees for tax advisors and fiscal representatives add to the cost, particularly for multi-country EU registration.15
Conclusion
VAT registration is a non-negotiable part of selling in the UK and Europe. For Indian exporters, the key is to understand your obligations before you start shipping. For Indian ecommerce exporters, Amazon Global Selling assists with registration and ongoing compliance, making it easier to manage your VAT obligations as your business grows.
Amazon Global Selling: Easy e-commerce exports and hassle-free shipping
If you are a business owner and you want to sell your products to the world, Amazon Global Selling enables you to list and sell ‘Made in India’ products on 18 Amazon global marketplaces. As an e-commerce export program, Amazon Global Selling provides support and guidance at every step of your export journey, connecting you to Amazon’s Service Provider Network for tailored compliance, payments, and logistics support.
Registered sellers can choose to ship their products by themselves through Merchant Fulfilled Network (MFN) or they can opt for Fulfillment by Amazon (FBA) and outsource order fulfillment to Amazon including packing, storage, delivery, and returns. Amazon Global Selling simplifies the process of international shipping to the world, helping businesses navigate customs and reach a vast audience.
Registered sellers can choose to ship their products by themselves through Merchant Fulfilled Network (MFN) or they can opt for Fulfillment by Amazon (FBA) and outsource order fulfillment to Amazon including packing, storage, delivery, and returns. Amazon Global Selling simplifies the process of international shipping to the world, helping businesses navigate customs and reach a vast audience.
Frequently Asked Questions
1. How do I get a VAT number?
Apply online through the relevant tax authority — HMRC for the UK or through the national tax portal of the EU country where you are registering. Registration is free of charge.
2. How long does VAT registration take?
VAT registration can take anywhere from a few days to a few weeks depending on the country, complexity of your application and the workload of the relevant tax authority. It is advisable to apply well in advance of your intended start date to avoid any delays.
3. Can I register for VAT online?
Yes. UK VAT registration is fully online via HMRC. Most EU countries also offer online registration through their national tax portals.
4. Do I need VAT registration to sell internationally?
Yes, you often need VAT registration to sell internationally depending on where goods are stored and your sales volumes.
5. What happens if I cross the VAT threshold?
You are legally required to register for VAT, charge VAT on sales, and file regular returns. Apply for registration before or immediately upon crossing the threshold to avoid late registration penalties.
6. What is a VAT return?
A VAT return is a periodic report submitted to the tax authority showing the VAT you have collected from customers (output VAT) and the VAT you have paid on business purchases (input VAT). The difference is either paid to or reclaimed from the tax authority.
7. What is Import VAT?
Import VAT is charged when goods enter a country from outside its borders. It is calculated on the customs value of the goods plus any applicable duties, and can be reclaimed via your VAT return once you are registered.
8. What is tax representation?
Tax representation is where a locally established individual or business acts on behalf to manage your VAT obligations. Some EU countries require Indian exporters to appoint one before VAT registration.
9. What is the difference between OSS and IOSS?
OSS is for sellers making cross-border sales of goods already inside the EU to EU consumers. IOSS is specifically for non-EU sellers shipping low-value goods (€150 or less per consignment) directly from outside the EU to EU consumers. Some businesses may need to use both.
10. What is Single VAT Registration (SVR)?
Single VAT Registration (SVR) allows businesses selling across multiple EU countries to register for VAT in just one member state and manage all EU VAT obligations through a single return — using the OSS or IOSS schemes.
11. How often should I file VAT returns?
In the UK, VAT returns are typically filed quarterly. In EU countries, this varies. OSS returns are filed quarterly. Always check the specific filing requirements for each country where you are registered.
Published on October 23, 2021.
Updated on March 30, 2026.
Sources:
1. https://www.investopedia.com/terms/v/valueaddedtax.asp
2. https://taxation-customs.ec.europa.eu/taxation/vat/vat-directive/vat-identification-numbers_en
3. https://www.gov.uk/register-for-vat
4. https://stripe.com/in/guides/tax-registration-process-europe
5. https://www.investopedia.com/terms/v/valueaddedtax.asp#toc-how-value-added-tax-vat-works
6. https://sell.amazon.co.uk/learn/vat-resources
7. https://taxation-customs.ec.europa.eu/taxation/vat/vat-directive/vat-rates_en
8. https://sterlingandwells.com/blogs/benefits-of-voluntary-vat-registration/
9. https://www.taxually.com/blog/registering-for-vat-in-the-eu#how-to-register-for-vat
10. https://www.taxually.com/blog/selling-online-an-introduction-to-marketplace-vat
11. https://vat-one-stop-shop.ec.europa.eu/.
12. https://www.taxually.com/blog/a-guide-to-eu-vat-for-non-eu-businesses.
13. https://www.avalara.com/us/en/vatlive/country-guides/europe/uk/uk-vat-registration.html
14. https://www.taxually.com/blog/a-guide-to-eu-vat-for-non-eu-businesses
15. https://www.gov.uk/government/collections/vat-penalties-and-interest
Updated on March 30, 2026.
Sources:
1. https://www.investopedia.com/terms/v/valueaddedtax.asp
2. https://taxation-customs.ec.europa.eu/taxation/vat/vat-directive/vat-identification-numbers_en
3. https://www.gov.uk/register-for-vat
4. https://stripe.com/in/guides/tax-registration-process-europe
5. https://www.investopedia.com/terms/v/valueaddedtax.asp#toc-how-value-added-tax-vat-works
6. https://sell.amazon.co.uk/learn/vat-resources
7. https://taxation-customs.ec.europa.eu/taxation/vat/vat-directive/vat-rates_en
8. https://sterlingandwells.com/blogs/benefits-of-voluntary-vat-registration/
9. https://www.taxually.com/blog/registering-for-vat-in-the-eu#how-to-register-for-vat
10. https://www.taxually.com/blog/selling-online-an-introduction-to-marketplace-vat
11. https://vat-one-stop-shop.ec.europa.eu/.
12. https://www.taxually.com/blog/a-guide-to-eu-vat-for-non-eu-businesses.
13. https://www.avalara.com/us/en/vatlive/country-guides/europe/uk/uk-vat-registration.html
14. https://www.taxually.com/blog/a-guide-to-eu-vat-for-non-eu-businesses
15. https://www.gov.uk/government/collections/vat-penalties-and-interest
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Disclaimer: Whilst Amazon Seller Services Private Limited ("Amazon") has used reasonable endeavours in compiling the information provided, Amazon provides no assurance as to its accuracy, completeness or usefulness or that such information is error-free. In certain cases, the blog is provided by a third-party seller and is made available on an "as-is" basis. Amazon hereby disclaims any and all liability and assumes no responsibility whatsoever for consequences resulting from use of such information. Information provided may be changed or updated at any time, without any prior notice. You agree to use the information, at your own risk and expressly waive any and all claims, rights of action and/or remedies (under law or otherwise) that you may have against Amazon arising out of or in connection with the use of such information. Any copying, redistribution or republication of the information, or any portion thereof, without prior written consent of Amazon is strictly prohibited.
