VAT Number

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  1. Shipping Methods: Air, Sea and Road
  2. Shipping Cost 
  3. Transit time 
  4. Customs and Import Regulation
What is VAT number

VAT Number: A Complete Guide for International Business and E-commerce

Whether you’re shipping goods from China to Europe or running an Amazon FBA business, a VAT number is your key to navigating international trade. But what exactly is it, and why does it matter? In this guide, we’ll cover everything you need to know about VAT numbers—from their meaning and formats to the registration process and real-world applications. Let’s make sure you’re fully equipped to succeed globally.

What is VAT Number?

A VAT number (Value-Added Tax Identification Number) is a unique code assigned to businesses by tax authorities in countries with a VAT system. VAT, or Value-Added Tax, is a consumption tax added at each stage of a product’s journey—from production to sale. Over 170 countries, including all 27 EU nations, use VAT, making the EU VAT number a cornerstone of cross-border trade.

    • Definition: It’s your business’s tax ID for VAT purposes, distinct from a general tax ID like an EIN in the USA.
    • Purpose: It tracks VAT payments and ensures compliance, especially for intra-community supply (trade within the EU).
    • Verification: Check any VAT number’s validity using the EU’s VIES website.

Think of it as your passport for tax compliance in global markets—it’s essential for clarity and legality.

Why You Need a VAT Number

A VAT number isn’t optional if you’re trading internationally. Here’s why it’s critical:

    • Tax Compliance: It determines who pays VAT—you or your buyer—and ensures accurate reporting.
    • Business Savings: Registering lets you reclaim VAT on expenses, boosting your bottom line.
    • Market Access: Required for selling in the EU or on platforms like Amazon FBA.

For example, an Amazon FBA seller exceeding sales thresholds (e.g., €100,000 in Germany) needs a VAT number per country. Skipping it risks penalties and lost opportunities.

Who Grants a VAT Number?

The issuance of a VAT number is governed by specific policies and systems in each country, meaning the country you’re aiming to sell in will provide your business’s VAT registration. If you’ve already been conducting sales in other countries without a VAT registration, it’s crucial to register straight away to prevent potential penalties. Luckily, the procedure is quite uniform across countries and is reasonably straightforward.

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VAT Number Formats Across Countries

VAT numbers follow distinct patterns, often starting with a country code. Here’s a quick reference:

Country VAT Format Example
UK GB + 9 digits GB123456789
France FR + 11 digits FR12345678901
Germany DE + 9 digits DE123456789
USA EIN (not VAT) 12-3456789
    • EU VAT Number: Prefixed with codes like “FR” or “DE” for EC VAT numbers.
    • USA Note: The U.S. uses an EIN instead—see IRS.gov for details.

These VAT formats are vital for invoices and customs, so double-check them with VIES.

When is a VAT Number Required?

You’ll need a VAT number if you:

    • Ship Internationally: Importing into the EU or trading between EU countries.
    • Sell Services: Providing or receiving VAT-taxable services.
    • Hit Sales Thresholds: In the UK, mandatory above £85,000 turnover.
    • Use Amazon FBA: Required per EU country based on sales volume.

For instance, shipping goods from China to France or selling across EU borders (e.g., Germany to Italy) demands an EU VAT number, even if the rate is 0% for intra-community supply.

How to Get Your VAT Number: A Simple Guide

Securing a VAT registration is straightforward if you follow these steps:

    1. Pick your countries: Identify where you’re trading or shipping.
    2. Contact the authority: Use the local tax site (e.g., HMRC for the UK) or hire an agent.
    3. Fill out the form: Submit business and trade details.
    4. Provide documents: Common requirements include:
        • Proof of home country tax registration.
        • Certificate of Incorporation or Articles of Association.
        • Evidence of trade (e.g., invoices)

                 5. Wait: Expect your VAT certificate in 2-8 weeks.

      Non-EU businesses can streamline EU registrations via the VAT MOSS system. Need help? Get a free quotation within 24 hours by contacting us!

      VAT Numbers in Action: Real Examples

        • Amazon FBA VAT: Selling in Europe? Register per country—Amazon’s Seller Central VAT services can assist.
        • USA Imports: No VAT number needed—just an EIN (IRS.gov).

      These scenarios show why skipping registration isn’t an option for serious businesses.

      Pros and Cons of VAT Registration

      Pros:

        • Opens global markets.
        • Enables VAT refunds.
        • Builds trust with partners like Amazon.

      Cons:

        • Adds administrative work.
        • May confuse some clients.

      The advantages far outweigh the hassles for most growing businesses.

      Applying for a VAT Number in Europe

      To register for a VAT number in Europe, follow these steps:

      1. Identify the EU countries where you need to register for VAT.
      2. Use a customs or VAT calculator to estimate the correct VAT amount for your transactions.
      3. Visit each country’s official tax authority website or consult a tax attorney to begin the registration process.
      4. Complete the VAT registration form with details about your business.
      5. Submit the required documents for VAT registration.

      After registration, you will typically receive a VAT certificate within 2-8 weeks.

      Essential Documents for VAT Registration

      The required documents may vary by country, but commonly requested items include:

      • Proof of tax registration in your home country.
      • Articles of Association (AoA) or Certificate of Incorporation for your business.
      • Extract from the national company registrar confirming your business’s existence.
      • Proof of planned trade, such as invoices or trade contracts.
      • Letter of Authority or Power of Attorney if you appoint a local tax agent.

      When Do You Need a VAT Number?

      According to the VAT Directive, you’ll need a VAT number in the following cases:

      • When supplying services subject to VAT, such as importing from non-EU countries.
      • When trading goods within the EU (intra-community supply).
      • When receiving services for which you must pay VAT.
      • When providing services where the end customer is responsible for paying VAT.

      Additionally, if your VAT-taxable turnover exceeds £85,000, you should register for a DPP VAT number.

      Where Do You Need a VAT Number?

      As of 2024, more than 170 countries require VAT numbers for various goods and services. This includes all 27 EU countries, as well as major economies like:

      Many Scandinavian and Latin American countries also require VAT numbers. For a complete list of countries and their VAT formats, refer to the official tax authority websites.

      Do I Need a VAT Number for Amazon FBA?

      In most cases, yes—especially when shipping to the EU or any country where VAT applies. There is no unified Amazon FBA VAT number for all EU nations; you’ll need a separate VAT number for each country where you sell goods.

      However, the EU has a sales threshold limit for FBA sellers. If your sales in an EU country remain below this threshold, you can apply your domestic VAT rates and remit the taxes accordingly. But if your sales exceed the threshold, you must register for a VAT number in that specific country.

      For example:
      If you’re an Amazon FBA seller based in the UK and want to sell in Germany, you can apply UK VAT rates to your German sales if they stay below a certain threshold (e.g., $15,000). If your sales exceed that threshold, you’ll need to register for a German VAT number and remit the collected tax to the German authorities.

      You can register for a VAT number through the Amazon Seller Central portal with the help of a third-party tax service provider.

      Conclusion: Your Next Step

      A VAT number unlocks international trade, ensures compliance, and simplifies taxes—whether you’re shipping globally or scaling on Amazon FBA.  Ready to register? Contact us for a free quotation within 24 hours and make your expansion seamless!

      Frequently Asked Questions 

      VAT number vs. tax ID?

      A VAT number is VAT-specific; a tax ID (like an EIN) covers broader taxes.

      VAT number in the USA?

      Nope—the U.S. uses EINs instead.

      Amazon FBA VAT needs?

      You’ll need one per EU country based on sales volume.

      How do I verify a VAT number?

      Use the VIES tool.

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