VAT Threshold

    The revenue level at which VAT registration becomes mandatory.

    Definition

    The VAT threshold is the annual turnover amount above which a business must register for VAT. Thresholds vary significantly across EU countries — from €10,000 in Greece to €85,800 in France. Below the threshold, businesses may still register voluntarily to reclaim input VAT.

    Related Terms

    VAT Registration
    The process of obtaining a VAT identification number.
    VAT (Value Added Tax)
    A consumption tax levied at each stage of the supply chain.
    Small Business Exemption
    An exemption from VAT for businesses below a certain revenue threshold.

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