The €10,000 EU VAT threshold is one of the most misunderstood rules in EU tax compliance. Many Stripe-based founders believe they’re safely below it. Most are wrong.
What the threshold is
If your total B2C digital services sales to EU customers outside your home country exceed €10,000 in a calendar year, you must register for OSS and charge local VAT rates for each customer’s country.
Below €10,000: you can use your home country’s VAT rate. Above it: you must charge the VAT rate for each customer’s country (Germany 19%, Hungary 27%, etc.).
The four most common misconceptions
1. “It’s €10,000 per country”
No — it’s €10,000 across all EU countries combined. Five customers in five different EU countries, each paying €300/month (€3,600/year), equals €18,000 total. Well above the threshold.
2. “It only applies to EU-based businesses”
No. A US or UK-incorporated SaaS selling digital services to EU consumers faces exactly the same threshold. The EU doesn’t care where your company is registered — only where your customers are.
3. “B2B sales count toward the threshold”
No. Only B2C sales count. Sales to verified EU VAT-registered businesses (reverse charge) are excluded. This is why accurate B2B/B2C classification matters even before you hit the threshold — it determines whether you’re actually above it.
4. “I can check at year-end”
Technically possible, but practically risky. Once you cross the threshold mid-year, you’re supposed to start applying local VAT rates immediately from that point forward. Retroactive compliance is complicated.
When most SaaS businesses actually cross it
At €29/month, you need roughly 29 EU B2C customers to cross €10,000/year. At €99/month, just 9 customers. If you have any meaningful EU user base, you’re likely already above it.
- €10–30/mo product: Cross with 28–84 EU B2C customers
- €50–100/mo product: Cross with 9–17 EU B2C customers
- €200+/mo product: Cross with as few as 4–5 EU B2C customers
What happens when you cross it mid-year?
- Register for OSS immediately (processing takes 1–4 weeks)
- Start applying local VAT rates to all EU B2C transactions from that point
- Include pre-registration transactions in your first OSS return if applicable
The EU’s approach to voluntary self-reporting is generally more lenient than to businesses caught in an audit. If you’ve been non-compliant, registering now and filing retroactively is far better than waiting to be investigated.
How to track it automatically
vidaReady shows your running EU B2C revenue total in the dashboard — broken down by country, with B2B transactions correctly excluded. You’ll know exactly where you stand against the threshold in real time, with zero manual tracking required.
