Expanding your business across borders means following new regulations, such as value-added tax (VAT) registration in the countries you sell to. Although the term "international VAT number" is often used, there's no single version of a VAT number. Each country has its own rules for when and why you need to register for VAT and what the process looks like.

If you own a global business, we'll discuss what you need to know about international VAT numbers, including how to stay compliant as you operate across borders.

What's in this article?

• What is an international VAT number?
  
• Why do businesses need an international VAT number?
  
• How do VAT registration rules differ by country?
  
• What does the VAT registration process involve?
  
• What are the ongoing VAT compliance requirements?
  

What is an international VAT number?

An "international VAT number" isn't a single, global ID. It's a series of country-specific VAT numbers your business needs for the jurisdictions it operates in. Each VAT number is an identifier that connects your business to a country's VAT system, proving you're registered to charge and remit VAT in that country.

Every country issues its own VAT number, and the format varies. Some start with a country code, but others don't. Once you have a VAT number, you'll use it in the following ways:

• Adding it to invoices so customers know you're registered to collect VAT
  
• Using it to claim VAT refunds on expenses in a certain country
  
• Using it when you file VAT returns
  

If you're selling across borders, you'll likely need more than one VAT number. There's an exception for sales within the EU: the EU's One Stop Shop (OSS) scheme allows businesses to register for VAT in a single EU country while making B2C sales across the region. Every VAT-registered business in the EU is listed in the VAT Information Exchange System (VIES), which lets other businesses confirm whether you're properly registered.

Why do businesses need an international VAT number?

If you sell to another country, it usually requires you to register for VAT. Here are the scenarios when you will be required to do so.

You sell digital services to customers in other countries

More than 125 countries require foreign providers of digital services, such as software, streaming platforms and mobile apps, to register for VAT and charge it to local customers.

This applies even if you don't have a physical presence in those countries. Simply delivering the service digitally is enough to trigger tax obligations.

You're shipping goods to customers abroad

If you sell physical products across borders, VAT obligations often apply once you exceed a country's distance selling threshold – and sometimes from the first sale. Once you cross the line, you need to either register for VAT locally or use a centralised filing scheme, if one's available. In either case, you'll need a VAT number to stay compliant.

You store inventory or fulfil orders from another country

Storing goods in another country – for example, in an Amazon warehouse or a third-party logistics centre – usually creates a taxable presence. It doesn't matter if your sales are low or just starting. Simply holding stock in-country makes you subject to local VAT registration rules.

This is especially relevant for e-commerce sellers that use distributed fulfilment networks. Once your products are physically in a country, many tax authorities view your business as operating there and expect you to register.

You import goods or run local operations

Importing products into a country typically requires VAT registration so you can:

• Clear goods through customs
  
• Reclaim any import VAT you paid
  
• Charge VAT correctly when you resell those goods locally
  

Even beyond product sales, VAT obligations can arise from services your business delivers. If you host events, install equipment or provide in-person services in another country, those activities can trigger registration requirements.

Registering for VAT and charging the correct tax isn't a suggestion – it's a legal obligation. If you don't register, you might be assessed for unpaid VAT retroactively and charged interest and penalties. Some countries charge flat fines, while others take a percentage of your undeclared sales. If you use marketplaces such as Amazon, your listings can be suspended until you provide a valid VAT number.

How do VAT registration rules differ by country?

There's no global VAT standard. Each country writes its own rules. What triggers registration, how the process works and what paperwork is needed varies. As soon as you start selling in a new country, you should check whether a VAT number is required and how to get one.

Here's how registration works in a few different markets.

The EU

The EU is often treated as a single market, but VAT is still handled at the country level. Each member state issues its own VAT number and runs its own registration system, and many require local-language applications. Despite the EU's harmonisation efforts, timelines, formats and extra requirements (e.g. certified translations, original documents) vary.

These are the registration thresholds:

• EU-based sellers: A single €10,000 annual threshold is applied for cross-border B2C sales within the EU. If a business based in the EU stays under that limit, they can charge their home country's VAT. If they exceed it, they must apply the customer's local rate.
  
• Non-EU sellers: There is no threshold. A seller outside the EU is expected to register for VAT on their first sale, unless it's exempt or subject to the reverse charge. The OSS scheme allows non-EU businesses to register in just one EU country.
  

The United Kingdom

Registration is done through the online system of His Majesty's Revenue and Customs (HMRC). It's available in English and doesn't typically require a fiscal representative.

These are the registration thresholds:

• UK-based businesses: Sellers in the UK must register once they exceed the £90,000 domestic turnover threshold.
  
• Non-UK businesses: There is no threshold. Any taxable sale into the UK triggers a VAT obligation, unless the reverse charge applies.
  

Other countries

• Switzerland: Foreign companies with worldwide turnovers that exceed 100,000 Swiss francs (CHF) must register for Swiss VAT.
  
• South Africa: Businesses with taxable turnovers that exceed 1 million South African rand (ZAR) must register for VAT.
  
• Brazil: There is no threshold, meaning any business that makes taxable sales in the country must register for VAT.
  

What does the VAT registration process involve?

The steps for VAT registration are generally similar everywhere, but the details and timelines vary. Here's what it usually looks like.

Figure out where and when to register

First, confirm which countries you're liable to register in. Tools such as Stripe Tax can help track when you're approaching a country's threshold, but it's still on you to act once you exceed it. Start the application process early so your registration is ready once you need it.

Gather your documentation

Most countries ask for similar paperwork, which includes:

• A certificate of incorporation or formation
  
• A business or trade licence, if applicable
  

You might need to translate or notarise documents. Some countries are strict about format, so original copies, specific forms or certified translations might be mandatory.

Submit the application

This often means filling out a VAT registration form, either online or on paper. Expect to provide:

• Your business name and contact information
  
• A description of your products or services
  
• Your estimated turnover in the country
  
• The date you exceeded the registration threshold
  

Some forms are available only in the local language. In more complex jurisdictions, you might want to work with a local tax professional or registration service.

Appoint a fiscal representative, if required

If you have a non-resident business, some countries require you to appoint a fiscal representative. This person or company is jointly liable for your VAT compliance and will often be your point of contact with the tax office.

They'll usually handle filing your application, too. Fees vary and you'll typically need to provide a signed agreement or power of attorney.

Wait for approval

Processing times can range from a few days to several weeks. During this period, the tax authority might follow up with additional questions or request more documentation. Respond promptly to avoid delays.

What are the ongoing VAT compliance requirements?

Getting a VAT number is just the start. Once you're registered, you're expected to stay compliant and that involves more than filing a form once a year. Here's what ongoing VAT compliance looks like in practice.

Charging VAT

You're responsible for applying the right VAT rate based on the customer's country and the type of product or service you're selling. That means keeping your pricing systems up-to-date and knowing when reduced or zero rates apply.

If you're selling to another business, you might not charge VAT at all. But you'll still need to validate its VAT number and document the sale correctly for reverse charge purposes.

VAT invoices

VAT invoices are official documents. Countries typically require them to include:

• Your VAT number
  
• The customer's VAT number (for B2B sales)
  
• A clear breakdown of tax rates and amounts
  
• Specific language that states whether VAT was charged or reverse-charged
  

Mistakes here can create problems for your customers (e.g. blocking them from reclaiming VAT) and trigger penalties in an audit.

VAT returns

In most countries, you'll need to submit VAT returns monthly or quarterly. Each return details:

• How much VAT you charged
  
• How much VAT you paid on business expenses
  
• The difference you owe or are owed back
  

Deadlines are strict. Miss one and you might face automatic penalties, even if you owe nothing that period. If you owe VAT, you'll need to pay it when you file. It's on you to ensure you have cash on hand to remit what you owe.

Some jurisdictions, such as the UK, also require digital record-keeping and electronic filing.

Record-keeping

You'll need to maintain:

• Copies of invoices issued and received
  
• Customer tax ID information
  
• Any correspondence with tax authorities
  

Retention periods vary by country, but 5–10 years is typical. And in many places, records must be digital and easily exportable in case of an audit.

Special reports

Certain types of transactions will mandate additional reports. In the EU, cross-border B2B sales often require you to file EC Sales Lists. If you move goods between EU countries, you might also need Intrastat declarations.

Ongoing compliance requires active management. Countries often change their VAT rates, rules and filing schedules. If a rate increases, you'll need to update your checkout flow immediately. If the filing frequency changes, you'll need to adjust your reporting cadence. If you no longer exceed the threshold for registration in a country, you might be able to deregister. But you'll need to follow a formal process to do that.