# VAT and GST Registration Thresholds by Country for Digital Sellers

> VAT and GST registration thresholds for digital sellers across 30+ countries. Understand which markets have zero thresholds for non-residents and when you must register.
- **Author**: Ayush Agarwal
- **Published**: 2026-09-20
- **Category**: Tax, Compliance, SaaS
- **URL**: https://dodopayments.com/blogs/en/vat-gst-registration-thresholds

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The single biggest mistake digital sellers make is assuming they have time before registering for VAT or GST. They don't. In most countries, the threshold for non-resident digital service providers is zero. Your first sale to a customer in that country creates an immediate registration obligation.

This guide maps VAT and GST registration thresholds across 30+ countries and regions. The critical pattern: many jurisdictions distinguish between resident and non-resident sellers, and non-residents often face a zero threshold. That means if you are selling digital products or SaaS from outside a country, you may need to register before you make your first sale.

For EU-specific depth, see our [EU VAT for SaaS in 2026 guide](https://dodopayments.com/blogs/eu-vat-saas-guide-2026). This post is a multi-country reference covering the thresholds that matter most for global digital businesses.

## Why Thresholds Matter (and Why They Don't Always Apply)

VAT and GST thresholds determine when a business must register with the tax authority. But the threshold rules differ dramatically based on:

- **Residency status**: Are you a resident or non-resident of the country?
- **Customer type**: Are you selling to businesses (B2B) or consumers (B2C)?
- **Service type**: Are you selling [digital services](https://dodopayments.com/blogs/digital-services-tax-global-guide), physical goods, or both?
- **Revenue source**: Does the threshold apply to total revenue or only revenue from that country?

For non-resident digital sellers, the pattern is consistent: most countries have either a zero threshold (register immediately) or a very low threshold (register after your first few sales). Resident sellers often get higher thresholds - sometimes EUR 10,000 or more - but non-residents rarely do. This is why [solopreneurs](https://dodopayments.com/blogs/solopreneurs-tax-compliance) and small [SaaS businesses](https://dodopayments.com/blogs/merchant-of-record-for-saas) need to understand their obligations from day one.

> The threshold question is almost academic for non-resident digital sellers. Most countries have moved to a zero-threshold model for B2C digital services specifically because they realized that waiting for a threshold to be crossed meant losing years of tax revenue. If you are selling SaaS or digital products from outside a country, assume you need to register on day one.
>
> - Ayush Agarwal, Co-founder & CPTO at Dodo Payments

## Global VAT and GST Registration Thresholds (2026)

The table below covers the major markets for digital sellers. Thresholds change frequently and vary by jurisdiction, so always verify the current rule with the local tax authority before relying on this data. This table reflects the rules as of September 2026.

| Country/Region | Threshold (Resident) | Threshold (Non-Resident) | Notes |
|---|---|---|---|
| **United Kingdom** | GBP 90,000 annual turnover | Zero (B2C digital services) | Non-residents must register for VAT on first B2C digital sale. B2B reverse charge applies. |
| **Germany** | EUR 25,000 (plus a EUR 100,000 current-year ceiling) | Zero (B2C digital services) | Non-residents register for OSS or directly. Threshold does not apply to non-residents. |
| **France** | EUR 37,500 annual turnover | Zero (B2C digital services) | Non-Union OSS available for non-residents. Threshold applies only to EU residents. |
| **Spain** | No domestic threshold | Zero (B2C digital services) | Spain has not transposed the EU SME exemption, so there is no domestic registration threshold. Non-residents must register for OSS or directly in Spain. |
| **Italy** | EUR 85,000 annual turnover | Zero (B2C digital services) | Non-residents register for OSS. Threshold does not apply. |
| **Netherlands** | EUR 20,000 annual turnover | Zero (B2C digital services) | Non-residents use OSS. Threshold applies only to residents. |
| **Belgium** | EUR 25,000 annual turnover | Zero (B2C digital services) | Non-residents register for OSS. |
| **Austria** | EUR 55,000 annual turnover | Zero (B2C digital services) | Non-residents use OSS. Threshold applies only to residents. |
| **Poland** | PLN 240,000 (approx EUR 56,000) | Zero (B2C digital services) | Non-residents register for OSS. High resident threshold, zero for non-residents. |
| **Sweden** | SEK 120,000 (approx EUR 10,500) | Zero (B2C digital services) | Non-residents use OSS. |
| **Denmark** | DKK 50,000 (~EUR 6,700) | Zero (B2C digital services) | Non-residents register for OSS. |
| **Ireland** | EUR 42,500 (services) | Zero (B2C digital services) | Non-residents must register. Ireland is a common OSS jurisdiction for non-residents. |
| **Canada** | CAD $30,000 annual revenue | CAD $30,000 annual revenue | GST applies to non-residents selling to Canadian consumers. Threshold is the same for residents and non-residents. |
| **Australia** | AUD $75,000 annual turnover | AUD $75,000 annual turnover | GST applies to non-residents selling digital products to Australian consumers. Threshold is the same. |
| **New Zealand** | NZD $60,000 annual turnover | NZD $60,000 annual turnover | GST applies to non-residents. Threshold is the same for residents and non-residents. |
| **Singapore** | SGD $1 million annual turnover | SGD 1 million global turnover **and** SGD 100,000 in Singapore B2C supplies | Overseas vendor registration has two limbs. You register only if global turnover exceeds SGD 1 million **and** B2C supplies to Singapore customers exceed SGD 100,000. Both must be crossed. |
| **Hong Kong** | None (no GST) | None (no GST) | Hong Kong has no goods and services tax. No registration required. |
| **India** | INR 20 lakh (services) | Zero | Non-residents supplying B2C digital services must register from the first B2C sale. Reverse charge applies to B2B. |
| **Japan** | JPY 10 million (~USD $67,000) | JPY 10 million (~USD $67,000) | Consumption tax applies to non-residents. Threshold is the same. |
| **South Korea** | KRW 100 million (~USD $75,000) | Zero | Non-residents supplying B2C digital services must register from the first B2C sale. |
| **United Arab Emirates** | AED 375,000 annual turnover | Zero | UAE VAT is 5 percent and digital services are taxable. Non-residents must register from the first B2C sale. |
| **Mexico** | MXN 2 million (~USD $117,000) | Zero | IVA is 16 percent. Non-residents must register from the first B2C sale, within 30 days of the first supply. |
| **Brazil** | No digital registration threshold | Zero | SaaS is subject to ISS (municipal service tax), moving to CBS and IBS under the 2026 reform. Non-residents register from the first B2C sale. |
| **Chile** | CLP 14 million (~USD $16,500) | Zero | Non-residents supplying B2C digital services must register from the first B2C sale. |
| **Colombia** | COP 1.4 billion (~USD $350,000) | Zero | Non-residents supplying B2C digital services must register from the first B2C sale. |
| **South Africa** | ZAR 2.3 million (approx USD 125,000) | ZAR 2.3 million (approx USD 125,000) | VAT applies to non-residents. Threshold is the same. |
| **Nigeria** | NGN 25 million (~USD $16,000) | USD 25,000 over a rolling 12 months (FIRS simplified regime) | Non-residents register under the FIRS simplified regime. The non-resident threshold is not the same as the resident one. |
| **Kenya** | KES 5 million (~USD $38,000) | Zero | Non-residents supplying B2C digital services must register from the first B2C sale. |
| **Philippines** | PHP 3 million (~USD $54,000) | PHP 3 million (~USD $54,000) | VAT applies to non-residents. Threshold is the same. |
| **Thailand** | THB 1.8 million (~USD $50,000) | THB 1.8 million (~USD $50,000) | VAT applies to non-residents. Threshold is the same. |
| **Indonesia** | IDR 600 million (~USD $38,000) | IDR 600 million, **or** 12,000 users per year | Two alternative triggers, either of which applies on its own: IDR 600 million in annual sales, or 12,000 users per year (1,000 per month). |
| **Malaysia** | MYR 500,000 (~USD $107,000) | MYR 500,000 (~USD $107,000) | SST applies to non-residents. Threshold is the same. |
| **Vietnam** | VND 100 million (~USD $4,000) | Zero | Non-residents supplying B2C digital services must register from the first B2C sale. |

## The Zero-Threshold Pattern for Non-Residents

The most important takeaway from this table: **non-residents selling B2C digital services face a zero threshold in most developed markets**. This includes the entire EU, UK, Canada, Australia, and New Zealand.

The reason is straightforward. Tax authorities realized that waiting for a threshold to be crossed meant losing years of tax revenue from foreign digital sellers. The solution was to eliminate the threshold for non-residents entirely. Your first sale triggers the obligation.

This is why many digital sellers are surprised by a tax authority letter months or years after they started selling. They assumed they had time to register once they hit a threshold. They didn't.

## Resident vs Non-Resident: The Critical Distinction

The table above distinguishes between resident and non-resident thresholds because they are often different. A resident seller in Germany might not need to register until they hit EUR 25,000 in annual revenue. A non-resident seller in Germany must register on their first B2C digital sale.

Residency is typically defined as:

- Having a permanent establishment (office, warehouse, or fixed place of business) in the country
- Being incorporated or registered in the country
- Having a local bank account or payment processor
- Having employees or contractors in the country

For a solo founder [selling SaaS](https://dodopayments.com/blogs/how-to-sell-software-online) from a home office in the US to customers in the UK, you are a non-resident in the UK. The UK threshold for you is zero. This is why understanding your [business license and tax obligations](https://dodopayments.com/blogs/business-license-sell-digital-products) is critical before your first sale.

## B2B vs B2C: The Reverse Charge Mechanism

Many countries apply different rules to B2B and B2C sales. For B2B sales (where the customer is a VAT-registered business), the reverse charge mechanism often applies. This means:

- You do not collect VAT from the customer
- The customer accounts for the VAT themselves
- You still need to register and file returns, but your VAT liability is zero

For B2C sales (where the customer is a consumer), you must collect VAT at the destination country rate.

This distinction matters because a SaaS company selling to both businesses and consumers in the same country may have different registration obligations depending on the mix of customers.

## The OSS (One Stop Shop) System

For non-residents selling B2C digital services in the EU, the OSS system simplifies compliance. Instead of registering separately in each of the 27 EU member states, you register for OSS in a single member state and file quarterly returns covering all your EU B2C sales.

The OSS system is available to:

- EU-established businesses (Union OSS)
- Non-EU businesses (Non-Union OSS)

For a US-based SaaS company, Non-Union OSS is typically the cleanest path. You choose one EU member state (often Ireland, which has a large tech community), register for OSS there, and file quarterly returns in EUR.

See our [EU VAT for SaaS in 2026 guide](https://dodopayments.com/blogs/eu-vat-saas-guide-2026) for detailed OSS mechanics.

## When to Register: The Practical Workflow

Given that many countries have zero thresholds for non-residents, the practical question is: when should you actually register?

The answer depends on your business model and risk tolerance:

- **Immediate registration**: If you are selling to customers in a country with a zero threshold for non-residents, you should register before your first sale. This is the safest approach.
- **Proactive registration**: If you are planning to sell into a market, register before you launch. This avoids the risk of selling without being registered.
- **Reactive registration**: If you have already made sales without registering, register immediately and consult a tax advisor about back-filing and penalties.

Most digital sellers follow a hybrid approach: they register in major markets (EU, UK, Canada, Australia) before launch, and they register in smaller markets once they have a few customers there. For [ecommerce businesses](https://dodopayments.com/blogs/ecommerce-sales-tax-compliance) and [digital product sellers](https://dodopayments.com/blogs/how-to-sell-digital-products-online), this is the standard playbook.

## Thresholds Change: Always Verify

The thresholds in this table reflect the rules as of September 2026. Tax rules change frequently, and some countries adjust thresholds annually for inflation. Before registering in any country, verify the current threshold with the local tax authority.

Key resources:

- **EU**: Each member state's tax authority website (e.g., HMRC for UK, Bundeszentralamt für Steuern for Germany)
- **Canada**: Canada Revenue Agency (CRA)
- **Australia**: Australian Taxation Office (ATO)
- **New Zealand**: Inland Revenue (IR)
- **Singapore**: Inland Revenue Authority of Singapore (IRAS)

## The Merchant of Record Alternative

If managing VAT and GST registration across multiple countries feels overwhelming, a [Merchant of Record](https://dodopayments.com/blogs/what-is-a-merchant-of-record) handles the entire process for you. An MoR becomes the legal seller in each country, registers for VAT and GST, collects tax from customers, and remits it to the authorities.

This means you do not have to track thresholds, register in multiple countries, or file quarterly returns. The MoR handles all of it. For global digital sellers, this is often the simplest path to compliance.

[Dodo Payments](https://dodopayments.com) is a Merchant of Record that handles VAT and GST registration and remittance across 220+ countries and regions. You focus on building your product; we handle the tax. See our [introduction](https://docs.dodopayments.com/introduction) and [pricing](https://dodopayments.com/pricing) for details.

## FAQ

### Do I need to register for VAT or GST if I am selling digital products?

Yes, in most countries. If you are a non-resident selling B2C digital services, you typically have a zero threshold and must register before your first sale. If you are a resident, you must register once you cross the resident threshold. The only exceptions are countries with no VAT or GST at all, such as Hong Kong. The UAE is not an exception: it charges 5 percent VAT on digital services and gives non-residents a zero threshold.

### What is the difference between VAT and GST?

VAT (value-added tax) and GST (goods and services tax) are the same concept with different names. VAT is the term used in Europe and most of the world. GST is the term used in Commonwealth countries (Canada, Australia, New Zealand, Singapore, India). The mechanics are identical: a consumption tax collected at each stage of the supply chain.

### Can I use the OSS system if I am not in the EU?

Yes, if you are a non-EU business selling B2C digital services to EU consumers, you can register for Non-Union OSS. You choose one EU member state, register there, and file quarterly returns covering all your EU sales. This is simpler than registering separately in each of the 27 member states.

### What happens if I sell without registering?

You are liable for back taxes, penalties, and interest. The penalties vary by country but are typically 10-20% of the unpaid tax. Some countries also impose criminal penalties for deliberate non-compliance. If you have already made sales without registering, consult a tax advisor immediately.

### Does a Merchant of Record remove my VAT and GST obligations?

No, but it removes your registration and filing obligations. A Merchant of Record becomes the legal seller and handles registration, collection, and remittance. You still owe the tax (it is built into your pricing), but you do not have to manage the compliance yourself.

### How do I know if I am a resident or non-resident for tax purposes?

Residency is typically determined by where you have a permanent establishment (office, warehouse, employees) or where you are incorporated. If you are a solo founder working from home in the US and selling to customers in the UK, you are a non-resident in the UK. If you have an office or employees in the UK, you are a resident.

## Takeaway

VAT and GST thresholds are the first step in understanding your global tax obligations. But the critical insight is that non-residents selling digital services face zero thresholds in most developed markets. This means registration is not optional - it is mandatory from day one.

The good news: registration is straightforward in most countries, and tools like the EU's OSS system make multi-country compliance manageable. The better news: a Merchant of Record can handle the entire process for you.

Start by identifying which countries your customers are in, then verify the current thresholds with the local tax authorities. If the compliance burden feels heavy, a Merchant of Record like [Dodo Payments](https://dodopayments.com) can simplify the entire process.

For more on global tax compliance, see our guides on [global VAT and GST for AI SaaS](https://dodopayments.com/blogs/global-vat-gst-ai-saas), [digital services tax](https://dodopayments.com/blogs/digital-services-tax-global-guide), and [cross-border payments](https://dodopayments.com/blogs/cross-border-payments-guide). For implementation details, see the [tax documentation](https://docs.dodopayments.com/features/tax-inclusive-pricing) and [integration guide](https://docs.dodopayments.com/developer-resources/integration-guide).
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