A VAT identification number is the unique number that identifies a taxable person (business) or non-taxable legal entity that is registered for VAT. It is also known as a VAT registration number.
VAT numbers are used to identify the tax status of a customer. For transactions that require an invoice, the VAT identification number of the taxable person supplying the goods or services is mentioned on the invoice (except simplified invoices in certain EU countries).
See: ‘VAT number’ in various EU languages
Check VAT number validity in the VAT Information Exchange System (VIES)
The importance of VAT numbers
- Used to identify tax status of the customer;
- Help to identify the place of taxation;
- Mentioned on invoices (except simplified invoices in certain EU countries).
Format of VAT numbers
Generally, a VAT identification number begins with the code of the country concerned followed by a block of digits or characters. Each EU country uses its own format of VAT identification number.
Who needs a VAT number?
Most businesses (and other persons carrying out an economic activity) need a VAT number (see Article 214, VAT Directive).
A business is obliged to register for VAT when it:
- carries out the supply of goods or services taxed with VAT;
- makes an intra-EU acquisition of goods;
- receives services for which it is liable to pay VAT (Article 196, VAT Directive);
- supplies services for which the customer is liable to pay VAT (Article 196, VAT Directive).
Who issues VAT numbers?
The European Commission has been made aware that companies in different Member States have been receiving proposals offering to obtain a valid VAT number against an advance payment. These proposals have the appearance of an official EU document.
The Commission reminds that only tax administrations have the right to issue a VAT number. If you are suspicious of unsolicited messages concerning obtaining a VAT number, you are advised to check with the tax administration concerned.
Does the same VAT number apply to all EU countries?
No. Every EU country issues its own national VAT number. This means that businesses supplying goods or services in several EU countries may have to get a VAT number in each of these countries.
A simplified registration via the One Stop Shop special scheme is available for businesses making cross‑border supplies of goods and services to consumers within the EU. For distance sales of goods imported from third countries with a value not exceeding EUR 150, the Import One Stop Shop (IOSS) can be used to declare and pay VAT.