What Does a VAT Number Look Like? Formats & Examples
Demystify VAT numbers. Explore their universal characteristics, diverse international formats, and the process for official validation.
A Value Added Tax (VAT) is a consumption tax applied to goods and services at each stage of the supply chain. Businesses registered to collect and remit this tax are assigned a unique identifier known as a VAT number. This number functions as a tax identification for commercial entities, aiding tax compliance and facilitating trade, particularly in cross-border transactions.
Standard Components of a VAT Number
VAT numbers follow a structured format for unique identification. Most begin with a two-letter country code, such as ‘DE’ for Germany or ‘GB’ for Great Britain, indicating the country where the business is registered. Following this country code, the number consists of a series of digits, though some formats may incorporate letters. The total length and specific arrangement of these characters can vary significantly between countries. Some VAT numbers also include check digits, which are used for internal validation to help prevent errors or fraudulent use.
Key Regional Examples
VAT numbers differ across major economic regions, reflecting national tax regulations.
In the European Union, VAT identification numbers start with a two-letter country code followed by 8 to 12 alphanumeric characters, with specific formats varying by member state. For instance, a German VAT number (DE) consists of nine digits, such as DE123456789. French VAT numbers (FR) are 11 characters long and can include letters, like FRX1234567890. Belgium uses a 10-digit format (BE), for example, BE0123456789.
The United Kingdom, while no longer part of the EU, maintains its VAT system. UK VAT numbers comprise nine digits, often preceded by the ‘GB’ country code, appearing as GB123456789. For businesses in Northern Ireland trading with the EU, a different prefix, ‘XI’, is used, followed by the nine digits, such as XI123456789.
Canada employs a Business Number (BN) for its Goods and Services Tax (GST) and Harmonized Sales Tax (HST). This BN is a unique 9-digit identifier. When used for GST/HST purposes, it is followed by a two-letter program identifier (e.g., ‘RT’ for GST/HST) and a four-digit reference number, resulting in a 15-character format like 123456789RT0001.
Australia utilizes an 11-digit Australian Business Number (ABN) as its business identifier, which also serves for Goods and Services Tax (GST) purposes. The ABN is structured with two leading check digits followed by a 9-digit identifier. An example ABN would be 51 824 753 556.
Verifying a VAT Number
Verifying a VAT number helps businesses ensure correct invoicing, maintain tax compliance, and protect against fraudulent transactions. An invalid VAT number can lead to processing delays or financial penalties.
For businesses operating within the European Union, the tool for validation is the VAT Information Exchange System (VIES) database, maintained by the European Commission. Users can access the VIES website, select the relevant EU member state, and enter the VAT number to confirm its validity and retrieve associated business details, if available.
In the United Kingdom, the official HM Revenue and Customs (HMRC) website offers a dedicated VAT number checker. This tool allows users to input a UK VAT number to verify its validity and ascertain the registered business name and address. For Canadian Business Numbers, including those used for GST/HST, the Canada Revenue Agency (CRA) provides an official Business Number Lookup tool on its website. This service allows users to search for business information using a BN, confirming its registration status. Similarly, in Australia, the Australian Business Register (ABR) offers the ABN Lookup service, which can be accessed online to verify the status and details of an Australian Business Number.