As revenue has grown with my Large Language Model business, Trelis Research, I’m starting to cross more thresholds for VAT registrations in different countries.
This quickly becomes complex as every country as their own registration and requires a separate remittance.
Things are simplified a little bit in the EU though, where a consolidated filing is possible.
I use Stripe to collected payments, which does a good job of applying and recording tax rates, so at least I have good information on the rates due, and also thresholds crossed for each jurisdiction.
For an Irish business, as is mine, I see this as a possible approach:
- Start with an Irish VAT registration, then get an EU VAT number. As a small business collecting less than 10 kEUR in the EU, all sales can be collected at the local (Irish) rate and remitted locally. After the threshold, there is a one stop quarterly filing that can be made for all EU states at once (applying the local rates in each case, but remitting to one country – Ireland in my case).
- The UK is outside of the EU remit now, so requires a separate registration and remittance.
- US states require separate registrations as thresholds are exceeded. Tax Jar (owned by Stripe) can file these for about $35 each, but I have to do the registration myself for each state. That’s not too bad.
- The hardest part is non-EU, non-UK, non-US. There are solutions like Taxually to do registration and filing, but the costs are 1kEUR+ per year, so the bar is high here for small/growing business.
I’ve lots more to learn on this. If I have erred or omitted, leave any comments below.