What Is a VAT Identification Number?
A VAT Identification Number is a unique reference issued by a tax authority to a business registered for value added tax under national law.
Also known as: VAT number, VAT ID, VAT registration number.
How VAT Identification Number works
A VAT Identification Number is issued by the tax authority once a business registers for value added tax, and the number then identifies the business on invoices, periodic VAT returns and cross-border transactions with other registered businesses, including checks which clients run before applying the reverse charge. The trigger is registration, which follows local thresholds or, for many non-established suppliers, the first taxable supply in the country. Format, prefix and verification tools vary by jurisdiction, so validity is generally confirmed through the official system of each tax authority.
VAT Identification Number vs Tax Identification Number (TIN)
Unlike a Tax Identification Number (TIN), which identifies a taxpayer for income tax purposes, a VAT Identification Number exists only for businesses registered for value added tax.
Example
Illustrative example: A consultant registered for VAT in Country A invoices a company in Country B. The consultant records the client's VAT Identification Number on the invoice and checks the number through the official validation tool, which supports applying the reverse charge so the client accounts for VAT in Country B.
Common misconception
Myth: Any company or freelancer automatically has a VAT number once a business is set up.
Reality: A VAT Identification Number is generally issued only after VAT registration, and many small businesses below local thresholds hold an income tax number but no VAT number.
Frequently asked questions
What is a VAT identification number?
A VAT Identification Number is the reference a tax authority assigns to a business registered for value added tax, used on invoices and returns and in cross-border business transactions.
Is a VAT number the same as a tax ID?
A VAT Identification Number is distinct from an income tax identification number in most countries, although a few jurisdictions build both on the same base reference.
Related terms
- Tax Identification Number (TIN) — Income tax number often confused with VAT number
- VAT Registration — Registration step which produces the number
- EIN (Employer Identification Number)
Related guides
- Accounting and bookkeeping for digital nomads — Invoicing details including VAT numbers
Sources
Last verified: 2026-10-09. This entry is general information, not tax or legal advice; rules vary by country and change over time.
