Value Added Tax (VAT) Number

Value Added Tax (VAT) Number

What is a VAT Number?

A VAT Number, or Value Added Tax Number, is a unique identifier assigned to businesses and entities within countries where VAT is implemented. It’s used primarily for tax purposes, enabling governments to track and manage the collection of VAT on goods and services. A VAT number is crucial for businesses as it legitimizes their status as registered taxpayers.

How do I Request a VAT Number?

Requesting a VAT number typically involves registering your business with the national tax authority. The process varies by country but generally requires submitting business details and financial information. Once registered, you’re issued a VAT number, which should be included on all invoices and official documents.

Do I Need a VAT Number for Every EU Country?

If you’re conducting business across multiple EU countries, understanding VAT requirements is essential. Generally, a VAT number registered in one EU country is recognized throughout the EU. However, if your business has a substantial presence or warehouses in other EU countries, you might need to register for VAT separately in each of those countries.

When Do I Pay VAT?

VAT is paid at various stages of the supply chain. As a business, you’re required to collect VAT from customers and remit it to the government. The specific times and conditions under which VAT is paid can vary based on local regulations and the nature of your business transactions.

Related Freight Glossary Terms

  • Economic Operator Registration and Identification (EORI)
  • Importer of Record