What is a VAT Number and How to Apply for One
Having a valid VAT number is vital when importing and exporting your goods to the EU. Read on to learn more about VAT numbers and how to get one.
Table of Contents
- VAT tax number: meaning and format
- How do I apply for a VAT number?
- Important documents needed for VAT registration
- Do I need a VAT number for importing to the US?
- Where do I need a VAT tax number?
- When do I need a VAT number?
- VAT vs. EIN
- Do I need a VAT number for Amazon selling?
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If you’re shipping goods to a country in the European Union (EU), you’ll need an EU VAT number to clear customs. This guide covers everything you need to know about VAT numbers and how to apply for one.
VAT tax number: meaning and format
Value-added tax identification number (VATIN), or simply VAT, is a unique identifier used by the government that links to every taxable person or registered business. A VAT number allows tax authorities in the EU to track the movement of goods and associated tax liabilities on trading businesses.
Businesses require a valid VAT tax number if they move goods to and from the EU. They need to produce their VAT registration number even when applicable VAT is zero-rated – that is, when the goods have no tax liability, such as on intra-EU trades.
Each VAT number is verifiable on the official VIES (VAT information exchange system) website of the European Union.
EU VAT Number Format
What does a VAT number look like?
Every EU country has a unique EU VAT number format and associated regulations, typically a block of numbers and letters.
The number starts with a 2-letter country code followed by 2-13 unique alphanumeric characters. Here are some examples:
| Country | Country Code | Format | No. of Characters | Special Remarks |
|---|---|---|---|---|
| France | FR | 12345678901,X1234567890,1X123456789,XX123456789. | 11 characters | May include alphabetical characters (except I or O) as first and/or second characters |
| Germany | DE | 123456789 | 9 characters | |
| Netherlands | NL | 123456789B01 or123456789BO2 | 12 characters | The 10th character is always B; companies forming a VAT Group have the suffix BO2 |
| Switzerland(Non-EU) | CHE | 123.456.789 | 9 characters followed by MWST, TVA, or IVA | MWST: German partTVA: French partIVA: Italian part |
| United Kingdom(Non-EU) | GB | 123456789 | 9 characters |
Tip: Double-check the correct EU VAT number format when shipping to different countries. An incorrect VAT format on invoices and other shipping documents can lead to delays.
How do I apply for a VAT number?
To register for an EU VAT number:
- Make a list of all the EU countries where you’ll need to register for VAT
- Visit the official tax authority website of each country or seek a tax attorney to begin the VAT registration process
- Fill out the local VAT registration form with information related to your business and trading activities
- Upload the mandatory documents required for VAT registration
- VAT registration takes around 2-8 weeks
- Most EU countries require you to fill out the form in the local language. This is done to avoid any misrepresentation of facts due to translation
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Important documents needed for VAT registration
Although the specific list of documents depends on the country where you are registering for VAT, here are some typically required ones:
- Proof of tax registration in the country where your business is based
- Your company’s articles of association (AoA) or certificate of incorporation
- An extract from the national company registrar as proof of the existence of business
- Proof of planned trade such as commercial invoices or trade contracts
- Letter of authority or power of attorney, if you appoint a local tax agent or fiscal representative
Do I need a VAT number for importing to the US?
The United States is one of the few countries that does not require VAT registration for importing. However, the US does levy sales tax and other federal duties on imported goods in place of VAT.
Typically, importers to the US need an Employer Identification Number or EIN, which we’ll discuss later in this article.
In the meantime, if you’re exporting or importing to the US, you don’t need to worry about VAT tax number registration.
Where do I need a VAT tax number?
As of 2021, 170+ countries use VAT numbers on various goods and services.
These include all 27 countries that form a part of the European Union; these use the EU VAT number. Other major economies like the UK, Russia, Australia, Canada, China, and India require a VAT number for imported goods and services. Most Scandinavian and Latin American countries use VAT as well.
Find a complete list of countries with their VAT tax number formats here.
Both EU and non-EU companies require a VAT number to move goods across EU nations.
When do I need a VAT number?
As per the EU VAT Directive, you’ll require a VAT tax number for shipping in four cases:
- When you supply goods or services taxable with VAT, such as importing from non-EU countries
- When you trade goods between different member states of the EU (intra-community supply), VAT is often zero-rated; but VAT number of both supplier and customer is mandatory
- When you receive services for which you need to pay VAT
- When you supply services for which the end customer is liable to pay VAT
Confused about whether to get a VAT registration? Take this VAT Risk Assessment test to see when and where you need to get a VAT number.
VAT vs. EIN
If you’re based in the US or trading across the US, you may be familiar with EIN (Employer Identification Number).
How is an EIN different from a VAT number? Do you need a VAT number if you have an EIN?
Let’s go through some key differences between these two tax identifiers.
| # | Value-Added Tax Identification Number(VATIN) | Employer Identification Number(EIN) |
| 1. | Applies to all EU countries and other nations that use VAT | Applies to US businesses only |
| 2. | Unique 2-13 character alphanumeric code that links to all businesses registered for VAT tax numbers | Unique 9-digit number issued to businesses (or employers) in the US by Internal Revenue Services (IRS) |
| 3. | Tracks the movement of goods and tax liabilities of businesses trading in the EU | Tracks the tax liability of businesses trading in the US |
| 4. | You need a VAT number if you import or export to EU countries | EIN isn’t mandatory for foreign shippers importing into the US, but US-based exporters or importers require an EIN |
Note: You can have both EIN and VAT – based on the country where you do business. The EIN and/or VAT number also goes on the commercial invoice issued by the seller.
Do I need a VAT number for Amazon selling?
In most cases yes, especially when importing to the EU or any other country where VAT is applicable on imports.
However, certain regulations differ when selling within EU countries.
If you sell goods in different EU countries, you need a valid EU VAT number for each country where you have customers. Unfortunately, there is no unified Amazon FBA VAT number that can cover all EU nations.
However, the EU has a sales threshold limit for FBA sellers who are VAT-registered in a specific EU member country. This limit differs for each EU country.
If your annual sales in a country fall under that threshold limit, you don’t need to register for a VAT number in that country separately. In such a case, you can charge VAT according to your domestic VAT registration number.
Here’s an example.
Let’s say you’re an Amazon FBA seller based in Spain and want to sell in Germany (both EU member states). If your sales figure in Germany falls under their specified threshold amount (say, $10,000), you can charge your customers according to Spanish VAT tax rates without registering for a separate VAT number in Germany. In this case, you’d remit all the taxes collected by shipping to local Spanish tax authorities. However, if your sales exceed the threshold, you must register for a German VAT number and remit the tax collected from those sales to German tax authorities. The tax rates will also differ according to Germany’s VAT brackets.
Amazon’s marketplace has a vast network of sellers across EU countries. That’s why Amazon requires an EU VAT number from businesses trading in the EU before listing their inventory.
Don’t have a registered EU VAT number? Don’t worry! Amazon also offers VAT registration on its seller central portal with a third-party tax service provider. Here’s a video guide on how to register for a VAT number on Amazon Seller Central.
If you’re trading in EU countries, work with your providers to ensure VAT compliance. The system may seem daunting but once you get the hang of it, VAT makes it easy to track shipping tax liabilities.
VAT Number
A Value Added Tax (VAT) number is used to identify a person or business registered for VAT.
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What is the VAT Number?
A Value Added Tax (VAT) number is used to identify a person or business registered for VAT.
A valid VAT number is required when you import goods into the EU.
EU VAT Number Structure:
Every VAT number begins with a country code followed by a block of digits or characters.
For example, a French VAT number will look similar to this: FR 12345678901
Who needs a VAT number?
Most businesses with goods that are applicable for a Value Added Tax should register for a VAT number with the EU.
In particular, a business is required to register for VAT in the following cases:
• A foreign company is buying and selling goods in an European country when it carries out the supply of goods or services taxed with VAT;
• When it acquires goods from different EU countries;
• When it receives services for which it is liable to pay VAT (under Article 196 VAT Directive);
• When it supplies services for which the customer is liable to pay VAT (under Article 196 VAT Directive).
Do you need a VAT number for every EU country? What about the UK?
Every EU country has its own VAT numbers, so if you are a business importing to multiple EU countries, you will need to register for a VAT number with each country.
The UK also requires a VAT number, which you’ll need to apply for with the UK government.
Do you need a VAT Number for non-EU countries in Europe?
Even non-EU country such as the UK, Switzerland, or Iceland has its own VAT system which you’ll need to register for with their local government.
If your business is not registered in Europe, can you still apply for VAT?
An application must be submitted to the local tax authority using the correct registration forms.
You can apply yourself or you can appoint a VAT agent to file the registration form on your behalf.
How long does it take to register for a VAT Number?
It usually takes about 4 to 8 weeks to apply, verify, and get your VAT Number. But keep in mind that countries operate differently, so it could take longer than 8 weeks.
��How to apply for a VAT number in the EU?
You can apply for VAT numbers with the local governments of EU countries. Each EU country has a local governing authority that is responsible for the VAT registration process.
�� Let’s say you’re registering for a VAT Number in France as a foreign business (not registered in the EU).
Step 1: You need to go to the EU National Tax Website and find their tax authority website.
Step 2: Go to “France — Tax Administration”
Step 3: Search “VAT Registration”
Step 4: Click on “Registering with the Foreign Business Tax Department”
Step 5: Follow the process of registering for the VAT Number. They will indicate the information and documentation that you’ll need to submit.
In the case of France, you’ll first need to request the form that you need to fill in from their Foreign Tax Department
If you’re applying for a VAT number in any country (EU, non-EU, or any other country) where a sales tax is applicable, you can refer to the Worldwide Tax Guide for the registration procedures.
How much will a VAT Number cost?
If you decide to use an agency, charges can be around €60.
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Logistics nerd and resident marketing guy of Bookairfreight. I love writing content that simplifies old-fashioned industry processes and provides solid, accurate information you can base your decisions on. Outside of logistics, I enjoy nature, hanging out with friends, electronic music and spirituality.
VAT номер компании в ЕС
Вопросы европейского НДС, а также связанные с ним вопросы по получению VAT номера, очень часто возникают у предпринимателей, осуществляющих экспортно-импортные поставки товаров как внутри ЕС, так и за его пределы, а также при оказании услуг клиентам на территории ЕС.
Содержание
Помимо классической реализации товаров через розничные точки, сегодня большую популярность набирают интернет-магазины: когда товары находятся на складе в одной стране, при этом после оформления заказа через сайт товар направляется непосредственно потребителю, который может находиться в любой другой стране ЕС или за его пределами.
Не меньшей популярностью сегодня могут похвастаться и интернет услуги: сайты знакомств, образовательные интернет-площадки, сайты, предоставляющие видео-, аудио- и фотоконтент, электронные площадки, на которых пользователи имеют возможность найти друг друга и согласовать условия по оказанию логистических услуг, поиску специалистов и многое другое.
При этом практически во всех перечисленных выше случаях будут возникать обязательства по расчету и уплате НДС, соответственно появится необходимость в получении VAT номера. Многие предприниматели сталкиваются с определенными сложностями при регистрации в качестве плательщика НДС (получении VAT номера), ведь, несмотря на гармонизированные правила НДС в ЕС, каждая отдельная страна имеет свои местные требования к регистрации по НДС и свои внутренние ставки.
Так что же такое VAT номер?
Value Added Tax Identification Number (VAT или, как его еще иногда называют, VATIN) – это уникальный номер, который идентифицирует налогооблагаемое лицо (бизнес) или необлагаемое налогом юридическое лицо, зарегистрированное в качестве плательщика НДС.
Таким образом, VAT номер необходим в том случае, когда деятельность связана с начислением и уплатой НДС.
отвечает Ксения Шилкина
Что представляет собой VAT номер? Применяется ли один и тот же номер НДС для всех стран ЕС?
Нет. Каждая страна ЕС выдает свой собственный национальный номер плательщика НДС.
VAT номера в странах ЕС различаются в зависимости от страны, в которой налогоплательщик регистрируется в качестве плательщика НДС. VAT номер обычно состоит из 2 букв, обозначающих государство, и кода, состоящего из 8 – 12 цифр.
Ниже приведены примеры VAT номеров по странам-членам ЕС.
Чем VAT номер отличается от других налоговых идентификационных номеров?
Не стоит путать такие понятия как идентификационный номер (Tax Identification Code – TIC или Tax Identification Number – TIN) и VAT номер налогоплательщика.
TIN номер присваивается однократно при регистрации юридического лица. Это один из основных реквизитов, который используется в разных документах, таких как счета-фактуры, платежные поручения (налоги и страховые взносы), заявления и документы в налоговую инспекцию.
VAT номер, в свою очередь, необходим только в том случае, если юридическое лицо подпадает под требования регистрации для целей уплаты НДС.
Налоговый идентификационный номер (TIN) на Кипре состоит из 8 цифр и 1 буквы, в то время как VAT номер состоит из 2х букв 8 цифр и еще 1 буквы, что в целом несложно перепутать.
Кроме того, если налогоплательщик ведет внешнеэкономическую деятельность на территории ЕС, то он также столкнется с таким понятием как EORI номер, который необходим для прохождения таможни.
EORI – это уникальный номер (код) идентификации субъекта предпринимательской деятельности Европейского Союза в единой централизованной базе данных предприятий, которые ведут внешнеэкономическую деятельность на территории ЕС.
EORI номер представлен 2 буквами, обозначающими государство, 10 цифрами и снова 5 буквами. Например: UA1234567890ASDFG.
В каких случаях компания должна получать VAT номер в ЕС?
Иностранные компании, как из ЕС, так и не входящие в зону ЕС, могут работать в любой стране ЕС без необходимости формирования местных компаний и филиалов, зарегистрировавшись в качестве плательщика НДС.
Если юридическое лицо, осуществляющее хозяйственную деятельность в ЕС, поставляет товары или услуги другому юридическому или физическому лицу, то такое юридическое лицо в зависимости от конкретных обстоятельств может/обязано зарегистрироваться в местных налоговых органах, взимать налог с покупателей и подавать отчетность по НДС.
Кроме того, страны ЕС самостоятельно устанавливают размер порогового значения и сроки, необходимые для регистрации в качестве плательщика НДС.
Отдельные пороговые значения могут быть предусмотрены для дистанционных продаж при приобретении товаров и услуг между странами ЕС.
What is a VAT number?
VAT – Value-added tax is a consumption tax charged on the value added of goods and services as they move through the supply chain. This tax in different countries has different names for example GST – goods and service tax. Businesses registered for VAT must collect the consumption tax at each stage of the supply chain, although it is ultimately paid by the end consumer. Collecting the tax on behalf of the government is a requirement for these businesses. The main difference from the sale tax is that VAT is charged at each stage of a sale and sales tax is only at the last stage where consumption takes place.
Filing regular tax returns and making payments based on the amount of tax collected is required for businesses registered for Value Added Tax or sales tax in most countries. The VAT number is used to identify the business on tax invoices and payments, ensuring the correct amount of tax is paid.
The purpose of VAT
The main goal of a VAT number is to identify and monitor businesses that have registered for VAT with the tax authorities. Businesses without a valid VAT number or those that are not registered for VAT may face penalties and fines.
Regular VAT returns are submitted to tax authorities, detailing collected and paid VAT within a timeframe. Identifying businesses on returns, ensuring correct VAT collection and payment, and tracking payments and refunds is the role of the VAT number. It is important to differentiate between Tax ID and VAT number – tax ID means that a business is registered with a specific tax authority for direct taxes. Usually, companies need additional application forms to obtain VAT registration and VAT certificate.
To ensure compliance with varying VAT rules, businesses trading within the European Union (EU) need to check the VAT status of their trading partners. A VAT number is critical in this process.
Obtain VAT
To obtain a VAT number, a business must follow these 4 steps:
- Determine whether registration as a VAT payer is required based on turnover and economic activity of the company (for example, revenue is more than a country threshold). In some countries, voluntary registration is also possible;
- Collect the necessary information: the name of the organization, address, tax identification number, and other documents;
- Fill out and submit registration forms to the tax office;
- Get a VAT certificate.
The format of VAT number
Usually, the number in the VAT certificate consists of numbers but when a company uses it for international transactions they need to add two letters as a sign of the country of origin. For intra-EU trade, the format of VAT numbers generally follows a standard pattern, consisting of two letters followed by a series of numbers. The initial two letters signify the country in which the business is registered, while the subsequent numbers constitute a unique identification code for the business. For instance, VAT number assigned in France might be formatted as follows:
The format of VAT numbers in the United Kingdom differs for the Northern Ireland region – these companies need to add XI at the beginning of their number when they trade with the EU.