The value-added identification number (VAT ID number) and the tasks associated with it can be confusing and are generally a rather unpleasant topic. Find out everything you need to know in our VAT ID guide. Have fun!
Maria
Last Updated on 8 February 2024
What is the VAT ID?
The VAT number (USt.-ID/USt.-IdNr.) identifies all companies in the European Union and is essential for intra-European trade.
If trade is conducted within the EU (intra-community delivery/service), a VAT ID is mandatory. ID is mandatory. In this article, you can find out when you need a VAT number, how to get one, how to validate it, and what else you need to know.
How is the VAT number structured?
In principle, the VAT number consists of a prefix (country code at the beginning) and a suffix (numbers/letters for identification). VAT IDs in countries that could be of interest to Amazon FBA sellers are structured as follows. On the left-hand side, you will find further articles on the VAT number in the respective country.
| VAT ID by Country | Structure |
|---|---|
| VAT ID Belgium | BE + 10 digits |
| VAT ID Bulgaria | BG + 9 digits BG + 10 digits |
| VAT ID Denmark | DK + 8 digits |
| VAT ID Germany | DE + 9 digits |
| VAT ID Estonia | EE + 9 digits |
| VAT ID Finland | FI + 8 digits |
| VAT ID France | FR + 11 digits (first and second positions can be a letter) |
| VAT ID Greece | GR + 9 digits |
| VAT ID Italy | IT + 11 digits |
| VAT ID Ireland | IE + 8 characters (second position can, last position must be a letter) IE + 9 characters (last two positions must be letters) |
| VAT ID Croatia | HR + 11 digits |
| VAT ID Latvia | LV + 11 digits |
| VAT ID Lithuania | LT + 9 digits LT + 12 digits |
| VAT ID Luxembourg | LU + 8 digits |
| VAT ID Malta | MT + 8 digits |
| VAT ID Netherlands | NL + 12 characters (third last position must be letter B) |
| VAT ID Austria | AT + U + 8 digits |
| VAT ID Poland | PL + 10 digits |
| VAT ID Portugal | PT + 9 digits |
| VAT ID Romania | RO + max. 10 digits |
| VAT ID Sweden | SE + 12 digits |
| VAT ID Slovenia | SI + 8 digits |
| VAT ID Slovakia | SK + 10 digits |
| VAT ID Spain | ES + 9 characters (first and/or last position can be a letter) |
| VAT ID Czech Republic | CZ + 8 digits CZ + 9 digits CZ + 10 digits |
| VAT ID Hungary | HU + 8 digits |
| VAT ID Cyprus | CY + 9 characters (last position must be a letter) |
| VAT ID United Kingdom | GB + 9 digits GB + 12 digits |
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When do you need a sales tax ID (VAT ID)?
Typical cases in which a foreign entrepreneur must register for a local VAT number are:
- Domestic deliveries: If you have a company based in an EU member state and make taxable supplies in that state, you will usually need a VAT identification number from the tax authority in your home country.
- Cross-border supplies within the EU: If your company supplies goods or services to companies in other EU member states, you may need a VAT identification number to report and record these transactions. The receiving company often needs your VAT identification number for its own accounting and VAT returns.
- Distance selling: If you sell goods to consumers in another EU Member State and exceed the distance selling threshold set by that country, you will usually need to register for a VAT number in the destination country.
- Purchase of goods from another EU member state: If your company purchases goods from another EU member state, you may need to apply for a VAT identification number in order to account for the VAT due on the purchase.
- Storage of goods in another EU member state: If you store goods in a warehouse or on consignment in another EU country, you may need to register for a VAT number in that country.
- Organization of events or conferences: If you organize events, conferences, or exhibitions in an EU country where you are not established and if the services are subject to VAT in that country, you may need a VAT registration number.
- Electronic services: If you provide digital services to consumers in the EU, you may need a VAT number, especially if you exceed the Mini One-Stop-Shop (MOSS) thresholds.
- E-commerce: With the development of e-commerce and changes to VAT rules, businesses selling goods online may need a VAT number in destination countries, especially after the introduction of the new EU e-commerce rules in July 2021.
- Installation or assembly: If you sell goods that need to be installed or assembled at a customer’s premises in another EU member state, this may result in you needing a VAT number in that state.
- Use of online marketplaces: If you sell through online marketplaces in the EU, some platforms may ask for your VAT number to comply with local regulations.
- Reverse charge mechanism: For certain B2B (business-to-business) transactions, the responsibility for reporting VAT may be passed from the seller to the buyer. In these cases, both parties must usually provide their VAT identification numbers.
It is important to remember that the need for a VAT number and VAT regulations may vary from one EU member state to another. If you think you need a VAT number, or if you are unsure, it is advisable to consult with local tax advisors or authorities to ensure compliance.
Where can I apply for a VAT number?
VAT can either be applied for online at the relevant tax office, by post, or, and this is probably the easiest way, directly in the hellotax tax software.
What information is required to register the VAT ID?
In principle, different documents must be submitted for registration in each country, but a few documents remain the same (even if these are unfortunately often only available in the respective national language).
It can be assumed that the following documents (+ others) are required for registration:
- Proof of VAT or tax registration in the country of origin
- The company’s certificate of incorporation (copy)
- The company’s articles of association (copy)
- An extract from the national company register as proof of existence,
- Proof of the planned trade (e.g. contracts or invoices)
Where can I check my VAT ID?
As the different VAT numbers are also considered a form of security from a tax perspective, online retailers should regularly check their VAT numbers.
For example, those who do not have to pay VAT due to the reverse charge procedure are only exempt if the company based abroad also fulfills all tax law requirements.
There are a number of tools that can be used to complete the check-in just a few minutes.
The numbers are required for invoices in most cases anyway and if the number is missing or incorrect, the invoicing party may have to pay the VAT itself in its own country.
The VAT number can either be checked with the VIES, a search engine of the European Commission.
Where can I find my VAT identification number?
Your VAT number can be found on invoices, and tax reports and you can also retrieve and check it online. The latter is not necessarily relevant for one tax number, but for example for cooperation with potential business partners.
Where must the VAT number be stated?
Anyone selling within the EU, e.g. B2B from England to Germany, must state the VAT number on the invoice. In general, it must be stated on all invoices relating to intra-community deliveries/services – by both the sender and the recipient.
Of course, the VAT ID is also important in other cases, for all associated reports and declarations that have to be submitted to the tax office, for example.
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Our VAT experts are happy to help you. Book a free consultation today!
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Tax number, tax identification number & VAT number
When we talk about the tax number in Germany, it is usually necessary to distinguish between the following 3 terms:
Tax number
The tax number is a personal number – it depends on the taxpayer’s place of residence and is made up of different abbreviations. If you move house, you will usually also receive a new tax number.
Tax identification number
The tax identification number is also a personal number. The tax identification number remains the same for life.
Value-added tax identification number
The value-added identification number (VAT number) is only required by entrepreneurs; employees have nothing to do with this tax number. Anyone who provides goods and services in Europe also needs a VAT number.
