VAT Registration Threshold
The specific level of taxable turnover at which a business must legally register for Value Added Tax (VAT).
Different countries have varying VAT registration thresholds. If a company's annual revenue exceeds this limit, it must register for VAT, charge it to customers, and remit it to the tax authority. Some businesses may choose to register voluntarily before reaching the threshold to reclaim VAT on business expenses.
Related terms
Tax & fees
Corporate Income Tax
A direct tax imposed by a jurisdiction on the income or capital of corporations or analogous legal entities.
Tax & feesFranchise Tax
A tax charged by some US states for the privilege of doing business or incorporating there.
Tax & feesDouble Taxation Treaty (DTT)
An agreement between two countries to prevent the same income from being taxed twice.