A VAT number, also known as a VAT identification number or VAT registration number, is a unique identifier used in many countries, including those in the European Union, for value-added tax purposes. It is assigned to a taxable person or business that is registered for VAT. The VAT number is used for tax records and payment purposes, and it confirms that the number is currently allocated and can provide the name or other identifying details of the entity to whom the identifier has been allocated.
Each EU country uses its own format of VAT identification number, but every VAT identification number must begin with the code of the country concerned and followed by a block of digits or characters. In the EU, a VAT identification number can be verified online at the EUs official VIES website, which confirms that the number is currently allocated and can provide the name or other identifying details of the entity to whom the identifier has been allocated.
Most businesses and other persons carrying out an economic activity need a VAT number. In particular, businesses are obliged to register for VAT when they carry out the supply of goods or services taxed with VAT, or when they make an intra-EU acquisition of goods. A simplified registration is available for businesses supplying telecommunications, broadcasting, and electronic services.
To get a VAT number, a business must obtain a tax identification number in a foreign country to carry out trading taxable activities. A VAT number is required when a business does not have a physical presence in the country but still has trading activities in that territory. The accounting obligations on a foreign VAT number and the need for a fiscal representative may vary depending on the country.
It is important to verify that the VAT number is valid in each corresponding countrys tax system, as giving false IDs is considered a form of fraud. If you encounter problems getting your VAT number, you can call the HMRC VAT helpline on 0300 200 3700 or +44 2920 501 261 if calling from abroad.
