diff --git a/app/controllers/admin/registrars_controller.rb b/app/controllers/admin/registrars_controller.rb
index 119abf85b..eb9ae9bd7 100644
--- a/app/controllers/admin/registrars_controller.rb
+++ b/app/controllers/admin/registrars_controller.rb
@@ -79,7 +79,8 @@ module Admin
                                         :code,
                                         :test_registrar,
                                         :accounting_customer_code,
-                                        :language)
+                                        :language,
+                                        :vat_rate,)
     end
   end
 end
diff --git a/app/models/registrar.rb b/app/models/registrar.rb
index 5fb68fea2..393bd56f2 100644
--- a/app/models/registrar.rb
+++ b/app/models/registrar.rb
@@ -17,10 +17,22 @@ class Registrar < ActiveRecord::Base
   validates :name, :reg_no, :reference_no, :code, uniqueness: true
   validates :accounting_customer_code, presence: true
   validates :language, presence: true
+  validates :vat_rate, :vat_no, absence: true, if: :local_vat_payer?
+  validates :vat_rate, presence: true, if: 'foreign_vat_payer? && vat_no.blank?'
+  validates :vat_rate, absence: true, if: 'foreign_vat_payer? && vat_no?'
+  validates :vat_rate, numericality: { greater_than_or_equal_to: 0, less_than_or_equal_to: 99 }, allow_nil: true
   validate :forbidden_codes
 
   after_initialize :set_defaults
 
+  before_save do
+    self.vat_rate = vat_rate / 100.0 if vat_rate
+  end
+
+  after_find do |registrar|
+    registrar.vat_rate = registrar.vat_rate * 100 if registrar.vat_rate
+  end
+
   def forbidden_codes
     return true unless ['CID'].include? code
     errors.add(:code, I18n.t(:forbidden_code))
@@ -163,4 +175,12 @@ class Registrar < ActiveRecord::Base
   def set_defaults
     self.language = Setting.default_language unless language
   end
+
+  def local_vat_payer?
+    country == Registry.instance.legal_address_country
+  end
+
+  def foreign_vat_payer?
+    !local_vat_payer?
+  end
 end
diff --git a/app/views/admin/registrars/_billing.html.erb b/app/views/admin/registrars/_billing.html.erb
index f3960233e..7ba778d08 100644
--- a/app/views/admin/registrars/_billing.html.erb
+++ b/app/views/admin/registrars/_billing.html.erb
@@ -7,6 +7,9 @@
             <dt><%= Registrar.human_attribute_name :vat_no %></dt>
             <dd><%= registrar.vat_no %></dd>
 
+            <dt><%= Registrar.human_attribute_name :vat_rate %></dt>
+            <dd><%= number_to_percentage registrar.vat_rate, precision: 1 %></dd>
+
             <dt><%= Registrar.human_attribute_name :accounting_customer_code %></dt>
             <dd><%= registrar.accounting_customer_code %></dd>
 
diff --git a/app/views/admin/registrars/form/_billing.html.erb b/app/views/admin/registrars/form/_billing.html.erb
index a3adf1312..5bc87a93d 100644
--- a/app/views/admin/registrars/form/_billing.html.erb
+++ b/app/views/admin/registrars/form/_billing.html.erb
@@ -17,6 +17,18 @@
                     </div>
                 </div>
 
+                <div class="form-group">
+                    <div class="col-md-4 control-label">
+                        <%= f.label :vat_rate %>
+                    </div>
+                    <div class="col-md-3">
+                        <div class="input-group">
+                            <%= f.number_field :vat_rate, class: 'form-control' %>
+                            <div class="input-group-addon">%</div>
+                        </div>
+                    </div>
+                </div>
+
                 <div class="form-group">
                     <div class="col-md-4 control-label">
                         <%= f.label :accounting_customer_code %>
diff --git a/config/locales/en.yml b/config/locales/en.yml
index 58c4e4c69..e9b8316d6 100644
--- a/config/locales/en.yml
+++ b/config/locales/en.yml
@@ -783,3 +783,4 @@ en:
 
   attributes:
     vat_no: VAT number
+    vat_rate: VAT rate
diff --git a/test/fixtures/registrars.yml b/test/fixtures/registrars.yml
index 0026f323b..b5715a0a5 100644
--- a/test/fixtures/registrars.yml
+++ b/test/fixtures/registrars.yml
@@ -16,3 +16,10 @@ goodnames:
   country_code: US
   accounting_customer_code: goodnames
   language: en
+
+foreign_vat_payer_with_rate:
+  <<: *DEFAULTS
+  name: 3
+  reg_no: 3
+  code: 3
+  vat_rate: 0.2
diff --git a/test/integration/admin/registrars/show_registrar_test.rb b/test/integration/admin/registrars/show_registrar_test.rb
index cb310317c..f13748191 100644
--- a/test/integration/admin/registrars/show_registrar_test.rb
+++ b/test/integration/admin/registrars/show_registrar_test.rb
@@ -16,4 +16,12 @@ class ShowRegistrarTest < ActionDispatch::IntegrationTest
   def test_language
     assert_text 'Language English'
   end
+
+  def test_vat_number
+    assert_text 'US12345'
+  end
+
+  def test_vat_rate
+    assert_text number_to_percentage(@registrar.vat_rate, precision: 1)
+  end
 end
diff --git a/test/models/registrar_test.rb b/test/models/registrar_test.rb
index 58a06b0ae..3ace52ba7 100644
--- a/test/models/registrar_test.rb
+++ b/test/models/registrar_test.rb
@@ -38,4 +38,54 @@ class RegistrarTest < ActiveSupport::TestCase
     registrar = Registrar.new(language: 'de')
     assert_equal 'de', registrar.language
   end
+
+  def test_rejects_vat_number_when_local_vat_payer
+    Registry.instance.stub(:legal_address_country, Country.new('US')) do
+      @registrar.vat_no = 'US1'
+      @registrar.validate
+      assert @registrar.invalid?
+    end
+  end
+
+  def test_rejects_vat_rate_when_local_vat_payer
+    Registry.instance.stub(:legal_address_country, Country.new('US')) do
+      @registrar.vat_rate = 20
+      @registrar.validate
+      assert @registrar.invalid?
+    end
+  end
+
+  def test_rejects_negative_vat_rate
+    @registrar.vat_rate = -1
+    @registrar.validate
+    assert @registrar.invalid?
+  end
+
+  def test_rejects_vat_rate_greater_than_max
+    @registrar.vat_rate = 100
+    @registrar.validate
+    assert @registrar.invalid?
+  end
+
+  def test_converts_integer_vat_rate_to_fractional
+    @registrar = registrars(:foreign_vat_payer_with_rate)
+    assert_equal 20, @registrar.vat_rate
+  end
+
+  def test_requires_vat_rate_when_foreign_vat_payer_without_number
+    Registry.instance.stub(:legal_address_country, Country.new('GB')) do
+      @registrar.vat_no = nil
+      @registrar.validate
+      assert @registrar.invalid?
+    end
+  end
+
+  def test_rejects_vat_rate_when_foreign_vat_payer_with_number
+    Registry.instance.stub(:legal_address_country, Country.new('GB')) do
+      @registrar.vat_no = 'US1'
+      @registrar.vat_rate = 1
+      @registrar.validate
+      assert @registrar.invalid?
+    end
+  end
 end
diff --git a/test/test_helper.rb b/test/test_helper.rb
index 7bde0991d..64cef7e0f 100644
--- a/test/test_helper.rb
+++ b/test/test_helper.rb
@@ -14,6 +14,8 @@ require 'webmock/minitest'
 
 Setting.address_processing = false
 
+Setting.registry_country_code = 'US'
+
 class ActiveSupport::TestCase
   include FactoryBot::Syntax::Methods