VAT

VAT identification number

The number a tax authority assigns to a VAT-registered business. Starts with the country code and is required on invoices and for cross-border trade.

What VAT identification number means

Every VAT-registered business receives a VAT identification number from its national tax authority. It always begins with the two-letter ISO code of the country (with the exception of Greece, which uses EL) followed by a national format of digits or letters. The number must appear on every invoice the business issues and, for cross-border supplies, the customer's number must appear as well.

In some countries the VAT ID is the same as the general tax number; in others they differ, and only the version with the country prefix is valid for EU trade. Before applying the zero rate on an intra-community supply or the reverse charge on a service, the supplier must check the customer's number in VIES and keep evidence of the check. Kontevia validates VAT IDs on incoming and outgoing invoices automatically.

Related terms

VIES (VAT Information Exchange System)The European Commission's system for checking whether an EU VAT ID is valid. Free to use and required evidence for zero-rated cross-border supplies.VAT (value added tax)A consumption tax charged on most goods and services in every EU country, collected by businesses and paid to the tax authority.Reverse chargeA VAT mechanism where the customer, not the supplier, accounts for the tax. Used for cross-border B2B services and some domestic sectors.Intra-community supplyA sale of goods transported from one EU member state to a VAT-registered customer in another. Exempt at origin, taxed as an acquisition at destination.EC sales list (recapitulative statement)A periodic report of sales to VAT-registered customers in other EU countries, listing each customer's VAT ID and the total value.

This entry is general information, not tax advice. Rules change; check the current position with your adviser or the tax authority of your country.

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Kontevia applies these rules for you

Rates, thresholds and e-invoicing formats come from the jurisdiction data of your country. You send the document, Kontevia books it and keeps the VAT summary ready.

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