Question 1

Do I need to register for VAT?

Accepted Answer

You need to register for VAT once your taxable turnover exceeds your country's registration threshold. In the UK this is £90,000, in Australia A$75,000, in Canada CA$30,000, and in Germany €22,000. Use our free VAT checker to find out your specific situation.

Question 2

What happens if I don't register for VAT when I should?

Accepted Answer

Failing to register for VAT when required can result in penalties, interest charges, and back-payment of VAT owed from the date you should have registered. Tax authorities can assess up to 4 years of back VAT in most countries.

Question 3

Is VAT the same as GST?

Accepted Answer

VAT (Value Added Tax) and GST (Goods and Services Tax) are essentially the same tax with different names. Countries like the UK, EU member states and South Africa call it VAT, while Australia, Canada, New Zealand and India use the term GST.

Question 4

Do I need to charge VAT on digital services to overseas customers?

Accepted Answer

Rules vary by country. In the EU, if you sell digital services to consumers in EU countries, you must charge VAT at the rate of the customer's country regardless of where you are based. The UK, Australia and other countries have similar rules for cross-border digital services.

Do you need to register for VAT or GST?

Your result will appear here

VAT invoice generator

Reverse VAT calculator

Country rate guide