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The UK government has recently announced the increase of the VAT registration threshold from £82,000 to £83,000 as from 1 April 2016. This threshold is only applicable to established UK businesses and it’s aimed at reducing the administrative burden of complying with VAT for small companies.
UK has the highest registration in the European Union allowing a large number of businesses to avoid charging and paying VAT to the authorities. On the contrary, Spain, Malta or Sweden do not have a VAT registration threshold. In these countries, any established business has to register as soon as they make a taxable supply.
With respect to non-established companies, there is no registration threshold in any Member State. When a business starts trading in a foreign EU country without having a permanent establishment, they need to register for VAT before making taxable transactions.