Expanding into international markets can provide new revenue, but it can also introduce a completely different tax environment. In many countries, one of the first requirements is value-added tax (VAT) registration. It’s important to understand when you need to start collecting VAT, how to register, and how to stay compliant once you’re in the system. Below, you’ll find a practical guide for every step of the process.

What’s in this article?

• What is a VAT number?
  
• When does a business need to register for VAT?
  
• How should you prepare before applying for a VAT number?
  
• How do you apply for a VAT number?
  
• What happens after you receive your VAT number?
  

What is a VAT number?

VAT works differently from sales tax; it’s charged at every stage of the supply chain. Businesses collect VAT on sales and reclaim VAT on their expenses.

A VAT number is your key to participating in that system. It’s a government-issued ID that links your business to a country’s tax system and allows you to collect VAT, reclaim the VAT you’ve paid, and comply with local laws. It’s how tax authorities track who’s collecting and remitting VAT on goods or services sold. Every country formats its VAT numbers slightly differently, but it’s typically a series of digits and letters.

If you’re selling into VAT regions such as the EU and UK, obtaining a VAT number is necessary for doing business. Without one, you could be noncompliant from your first sale. Once you’re registered, the number needs to appear on your invoices and tax filings in that country.

When does a business need to register for VAT?

VAT registration is triggered by specific thresholds and business activities that vary by country. Here’s what businesses should plan for based on where their customers are and how they’re selling to them.

Selling to customers in the EU

If you’re selling into the EU from outside it, you’re required to register for VAT before your first taxable sale. There is no registration threshold for non-EU companies; even one transaction to a customer in any EU country creates a VAT obligation.

Instead of registering in every individual EU country, you can register in one member state under the One Stop Shop (OSS) scheme. The OSS covers B2C sales of goods and services across all EU countries and allows you to file one centralized return, even if you’re selling into multiple countries.

Selling to customers in the UK

If you have a foreign business that sells taxable goods or services directly to UK customers, VAT registration is required from your first sale. This applies even if you’re shipping only a few physical products or providing digital access to UK subscribers. The standard UK VAT registration threshold (£90,000) applies to only UK-based businesses, not foreign entities.

The UK also applies different VAT rules depending on whether you’re importing goods, selling digital services, or storing inventory locally. In some cases, registration might also require you to appoint a UK-based fiscal representative.

Selling through online marketplaces

Tax laws in many countries now require marketplaces to collect and remit VAT for certain transactions on behalf of their sellers. If you sell exclusively through a platform that handles VAT (e.g., Amazon Marketplace), the marketplace might collect the tax and issue customer invoices under its own VAT registration.

If you also sell directly (through your own website) or hold inventory in-country (for local fulfillment), you’ll likely still need to register yourself. In some jurisdictions, using a marketplace doesn’t exempt you from other filing or reporting obligations, even if the platform collects the tax.

How should you prepare before applying for a VAT number?

Most countries ask for the same general types of information for VAT registration. Getting your documents in order beforehand can save you days of back-and-forth. Here’s what you’ll typically need to apply.

Business information

• Legal name of the business
  
• Trading name(s), if different from the legal name
  
• Registered business address
  
• Contact details (e.g., phone number, email)
  
• Business structure (e.g., sole trader, corporation)
  
• Company registration number or incorporation details
  

Some countries also ask for proof of identity, usually in the form of a passport or government-issued ID, for the person who submits the application.

Proof of registration

• Certificate of incorporation or formation
  
• Business or trade license (if applicable)
  

These documents help confirm your company is legitimate and authorized to do business.

Description of your business

• Industry classification (some applications use drop-down menus or standard codes)
  
• Description of your business (whether you’re selling digital products, physical goods, subscriptions, or services)
  
• Start date of taxable sales
  

Some tax authorities also ask for projected revenue or estimates of your future sales in their countries.

Banking information

• Account details for where VAT refunds should be sent
  

This doesn’t always have to be a local bank account, but having one can speed up payouts.

Contact person

• Name, role, and contact details of whoever’s handling the VAT registration
  

The contact can be a company director, someone on your finance team, or an external accountant. If someone else is submitting the application on your behalf, some countries might ask for written authorization.

Fiscal representative

Certain countries require foreign businesses to appoint a fiscal representative as a local tax agent who acts on your behalf. If required, include their name, address, and authorization documents with your application.

How do you apply for a VAT number?

The VAT registration process is fairly standardized: you figure out where you need to register, gather your documents, and submit the application through that country’s tax authority. Here’s how it typically works.

Identify where you need to register

Start with a clear list of the countries where you’ve triggered a VAT obligation. That list might include:

• One EU country for OSS registration
  
• The UK, if you’re selling directly to UK customers
  
• Any country where you hold inventory or sell through your own site
  

Go to the local tax authority’s website

Each country has its own process and portal. Here are some examples:

• In the UK, you’ll register with His Majesty’s Revenue and Customs (HMRC) through the Government Gateway.
  
• In the EU, you’ll register for the OSS through your chosen EU member state’s tax portal.
  

Most applications can be completed online, although some still involve physical forms.

Fill out the application

You’ll need to provide the information you gathered earlier, including:

• Legal name and address of your business
  
• Date your VAT liability began (this could be your first taxable sale or a projected date)
  
• Description of what you sell and where
  
• Banking information for refunds
  
• Fiscal representative details, if required
  

Some countries might ask for scanned copies of documents such as your business registration, proof of identity, and even contracts with local distributors. Ensure you’re including everything required.

Submit and wait for approval

After you submit, you’ll typically receive a reference or confirmation number. Processing times vary. In some countries, VAT numbers are issued in a few days. In others, this can take several weeks, especially if there’s a backlog or additional review is needed. The tax authority might contact you with questions, so assure that the contact person you listed is monitoring their email or phone.

Once approved, you’ll get your VAT number, usually by email or in a downloadable certificate. That number is now part of your official identity in that country’s tax system.

What happens after you receive your VAT number?

Getting your VAT number is the starting point for compliance. Once you’re registered, here’s what you must do next.

Charge VAT on applicable sales

You’re now responsible for collecting VAT on taxable sales in the country where you’re registered. That means you must update your checkout flow to apply the correct tax rate based on the customer’s location and the type of product or service you’re selling.

If you’re working with Stripe, Stripe Tax can automatically calculate VAT and apply it to every transaction in real time.

Add your VAT number to invoices

Countries typically require your VAT number to appear on all invoices for taxable sales. If you’re selling to business customers, ask for their VAT numbers, too. You’ll need them to apply a zero rate or reverse charge VAT to certain B2B transactions.

Track what you collect and what you spend

You’re expected to keep detailed records of both the VAT you collect from customers (output VAT) and the VAT you pay on business expenses (input VAT). These records provide support for your VAT return filings and must by law be stored for several years, often 5–10. Records to keep include invoices, receipts, credit notes, and import or export documentation.

Good accounting tools can help you stay organized, especially if you’re selling across multiple regions.

File VAT returns and pay on time

Most countries require VAT returns to be submitted monthly or quarterly. You’ll report what you collected, subtract what you’re eligible to reclaim, and pay the difference. Filing deadlines and payment rules vary, but penalties for late or inaccurate returns can be steep so it’s worth setting calendar reminders or using software that handles this for you.

If you’re using Stripe, you can export detailed tax reports or integrate with filing partners that help automate this workflow.