Doing business in another country? You can’t just sell and send invoices; most VAT countries require you to register and get a VAT number first. If you skip this step, you might face penalties, lost refunds, or invalid invoices even without a physical office. This guide explains what a VAT number is, why it matters, and when your business needs one.
What Is a VAT Number?
A VAT number is a unique tax identification code assigned to businesses that are registered to collect Value Added Tax (VAT) in a specific jurisdiction. Countries that operate a VAT system—such as the United Kingdom, Germany, France, Canada (HST/GST), and others—require businesses performing taxable transactions to register for VAT and obtain this number.
It’s not just a formality. A VAT number allows tax authorities to track the flow of taxable goods and services and ensures that your business complies with local indirect tax laws. When you’re VAT-registered, you can also reclaim input tax on your business expenses.
When Do You Need an EU VAT Number?
You need a VAT number if you:
- Sell goods domestically within a country where you’re not physically established
- Import goods into the EU or between EU Member States
- Engage in Intra-Community acquisitions or supplies
- Export goods and want to zero-rate your supplies
Example: A UK business buying from a German supplier and selling to German customers (with no office in Germany) must get a German VAT number.
You do not usually need an EU VAT number if:
- You’re only providing cross-border B2B services (reverse charge applies)
- You make domestic purchases of goods without selling in that country
Do All Countries Have VAT Numbers?
- EU VAT numbers start with 2-letter country codes (e.g., DE for Germany, GB for the UK)
- US does not have VAT—it uses sales tax
- Different VAT number formats by country
Trade Without a VAT Number?
- If your VAT taxable turnover is below the threshold (e.g., £85,000 in the UK), registration is optional.
- But if you cross the threshold or perform taxable activities in another EU country, you must register immediately.
- Non-established businesses must register from the first taxable transaction (no threshold).
Checking a VAT Number’s Validity
To avoid errors in VAT reclaim or filing, verify any VAT number you receive.
- UK VAT Checker: HMRC VAT Helpline or check vat number
- EU VAT Checker: VIES VAT Validation Service
Always look for the VAT number on official invoices – if missing, request a revised one to avoid losing reclaim rights.
How to Apply for a VAT Number
Applying for a VAT number involves:
- Filling out local tax authority registration forms
- Providing:
- Certificate of incorporation
- Articles of association
- Proof of business activity (contracts, orders)
- Proof of signature authority
- Existing VAT certificate from your home country
How Long Does It Take to Get a VAT Number?
- On average, 4–6 weeks for EU countries
- Can be longer if documentation is incomplete or if queries are raised by tax authorities
- Some countries offer fast-track registrations for urgent trading needs
How a VAT Number Is Formatted
A VAT number is a combination of a country-specific prefix and a sequence of digits. In the UK, this number begins with “GB” followed by nine digits (e.g., GB123456789). It serves as a unique tax ID for businesses registered to charge VAT.
For businesses in Northern Ireland that trade with the EU, the prefix changes to “XI”, reflecting the region’s special VAT status under the Northern Ireland Protocol—for example, XI123456789.
Why VAT Numbers Matter
A VAT number is crucial for doing business legally, especially in cross-border B2B trade. It’s needed to issue valid invoices, reclaim VAT, and file tax returns. Each country has its format and rules, so knowing them helps you stay compliant.