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European VAT Number

Understanding the European VAT Number and the Reverse Charge Mechanism

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Written by CQA
Updated this week

What is a European VAT Number?

A VAT identification number is a unique identifier assigned to businesses registered for VAT within the European Union. This number is essential for tax purposes and is used when trading goods and services across EU borders.

For more details, consult the website of the European Commission

What is it called in different languages?

Depending on the country, the VAT number may have different names:

  • France (FR): Numéro de TVA intracommunautaire

  • Germany (DE): Umsatzsteuer-Identifikationsnummer (USt-IdNr.) or Mehrwertsteuer-Identifikationsnummer (MwSt.-Nummer)

  • Italy (IT): Partita IVA

  • Netherlands (NL): BTW-nummer

  • Spain (ES): Número de Identificación Fiscal (NIF) (used for VAT purposes)

Why do we need your VAT number?

We need your VAT number to display it on our invoices. Moreover, if you are a business established in the EU (excluding France), providing a valid VAT number allows us to apply the reverse charge mechanism. This means that we do not charge VAT on our invoices, instead you are responsible for reporting the VAT yourself according to your local tax regulations.

What is the reverse charge mechanism?

The reverse charge mechanism is a tax rule designed to simplify cross-border transactions within the EU. Instead of the supplier charging VAT, the buyer (you) reports both the input and output VAT on their own tax return. This avoids unnecessary VAT payments and refunds.

How to find your VAT Number

If you are unsure whether your business has a VAT number, you can:

  1. Look at your company registration documents – VAT numbers are often assigned at the time of company registration.

  2. Ask your accountant or finance team – They should be able to confirm whether your business is VAT-registered.

  3. Check your tax authority’s website – Most EU tax authorities provide online portals where businesses can look up their VAT details.

If you are not VAT-registered, you must check the "I do not have a VAT number" option to confirm your status.

What happens if I don’t provide a VAT Number?

Without a valid VAT number, we are legally required to charge VAT on your invoices, which may increase your costs.

I entered a VAT number, but the pop-up still appears?

When you enter your VAT number, we instantly validate its format. However, we also check its authenticity through the European Commission’s VIES database, which may take a minute or two.

If the validation fails, the pop-up will continue to appear, prompting you to enter a corrected number.

You can verify the validity of your VAT number yourself using the VIES VAT number validation tool.

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