Glossary
What is a VAT number?
A VAT number is the unique ID a tax authority gives a VAT-registered business. Learn the format, where it goes on an invoice and how to validate one.
Updated · By PayToMe Editorial
A VAT number is a unique identification number that a tax authority assigns to a business once it registers for value added tax. It proves the business is allowed to charge VAT, and it appears on VAT invoices so buyers can reclaim the tax.
How it works
In the European Union, a VAT number starts with a two-letter country prefix followed by digits or letters in a national format. The length and pattern differ by country. For example, Germany’s numbers have the prefix DE followed by nine digits, while UK numbers use GB with nine digits. This sample is fake: DE123456789.
A VAT number matters in three places:
- On your invoices. A VAT invoice shows your number, and often the customer’s, especially for business-to-business sales. See VAT invoice requirements for the full field list.
- For cross-border B2B sales. When you sell services to a VAT-registered business in another EU country, you often rely on the customer’s number to apply the reverse charge and not charge VAT yourself.
- For buying. Suppliers may ask for your number so they can invoice correctly.
Before you zero-rate a sale based on a customer’s number, validate it. The European Commission runs a free service called VIES that confirms whether an EU VAT number is active. The UK has its own checker. Keep a record of the check, because tax inspectors may ask for proof.
Registration rules, thresholds and formats vary by country and change over time, so confirm them with your tax authority. This is general information, not tax advice.
Example
A Dutch web agency, Studio Oost, invoices a German company for a EUR 4,000 project. Both are VAT-registered. All numbers below are fake samples.
Create an invoice with your number and a notes field using the invoice generator. PayToMe is in public beta, and you can sign in to PayToMe to create and send invoices today.
Related terms
- VAT: the tax the number registers you for.
- Reverse charge: the cross-border mechanism that relies on VAT numbers.
- Tax identification number: the broader category of tax IDs.
- E-invoicing: digital invoices that carry VAT numbers in structured fields.