VAT/GST registration thresholds vary by country and they change. Operators with cross-border DTC sales often discover too late that they\'ve crossed thresholds in EU/UK/Canada/Australia and owe back-VAT plus penalties. The fines from one country (typically 10-30% of unpaid VAT) can wipe a quarter\'s profit on cross-border revenue.
This calculator checks your sales volume against current thresholds: EU One-Stop-Shop (€10,000 cross-border B2C combined), UK (£90,000), Canada GST/HST ($30,000 CAD), Australia GST ($75,000 AUD). It estimates annual compliance cost — registration setup plus quarterly filings.
The strategic recommendation: register proactively before crossing thresholds, especially in EU. The OSS scheme makes EU registration straightforward — single registration, single quarterly filing, remit to all 27 countries from one form. Operators who wait until they\'ve crossed threshold deal with back-registration paperwork plus penalties; proactive registration costs the same and avoids the risk.
Pair with the VAT/GST Impact calculator (revenue-side margin impact), the Tariff Impact calculator (different from VAT — applies to goods crossing borders), and the International Shipping Cost calculator (full international economics). Most successful global DTC sellers work with a tax compliance service ($5-20K/year all-in) rather than DIY — the cost is small relative to sales scale and removes administrative burden.
Frequently asked questions
When must I register for VAT in the EU?
For B2C sales to EU consumers: registration required once you exceed €10,000/year in total cross-border sales (combined across all EU). Use the EU One-Stop-Shop (OSS) to register once and remit VAT to all 27 countries from a single registration.
What's the UK VAT threshold?
£90,000/year of UK B2C sales (as of 2026). Below this threshold, no UK VAT registration required. Above, register with HMRC, charge UK VAT on sales, file quarterly returns. The threshold is rolling 12-month, not calendar year.
Do US sellers really need to register?
Yes, if you sell to EU/UK consumers above thresholds. Marketplaces (Amazon EU, Etsy) often handle VAT collection on your behalf. Direct DTC sales (Shopify) require you to register. Failure to register = back-VAT plus penalties when discovered.
What's the IOSS scheme?
Import One-Stop-Shop. For EU shipments under €150, IOSS lets you collect VAT at point of sale, prepay it via single registration, and have customs clear faster. Shipments without IOSS = customer pays VAT on delivery, often with handling fee, increasing cart abandonment.
How much does VAT compliance cost?
EU OSS registration: free, but quarterly filings cost $200-500/quarter through services like Avalara or 1Office. UK VAT: similar. Country-specific registrations (when needed): $500-2K setup + $200-500/quarter ongoing each. Total compliance cost for global DTC seller: $5-20K/year.