Route: What it is
What a VAT identification number is
A VAT identification number (often written as “VAT ID”) is a tax identifier used to identify a business for value added tax purposes. In the European Union, VAT IDs are used in cross-border trade and in administrative processes where tax status matters.
Why it exists
VAT systems rely on identifying taxable persons and linking transactions to registered entities. A VAT ID supports reporting, invoicing, and administrative coordination across jurisdictions, especially when trade crosses borders.
- Helps distinguish a business for VAT reporting and record keeping.
- Supports intra-EU trade documentation (where VAT treatment may differ by context).
- Enables structured communication between businesses and tax administrations.
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Who uses it
VAT IDs are used by businesses, accountants, and tax administrations as part of standard commercial and reporting workflows. They may be referenced on invoices and in filings, depending on the transaction and the applicable rules.
What this site does and does not do
This site explains terminology and structure. It does not validate VAT numbers, provide lookups, or confirm registration status.