VAT ID Number:
What is a VAT ID. number and what needs to be considered?
The VAT ID no. (VAT Identification Number) is a unique identifier assigned by the relevant tax authority to identify companies within the European Union (EU) that are subject to VAT. The VAT ID no. consists of a country code followed by a unique number.
The VAT ID no. is needed to do business within the EU as it helps prevent VAT fraud and facilitates trade. If a company wants to do VAT-registered business in another EU country, they need a VAT number in order to charge VAT and reclaim the VAT paid.
Applying for a VAT ID no. depends on the place of residence of the company and the type of activity. In Germany, the VAT ID no. assigned by the Federal Central Tax Office (BZSt). As a rule, companies that are subject to VAT in Germany must have a VAT ID number. apply for.
It is important to enter the VAT number. used correctly and always quoted on invoices and other business documents to avoid VAT issues and delays.