What Is a VAT Number? Complete 2025 Guide for Businesses & Freelancers
What Is a VAT Number? Complete 2025 Guide for Businesses & Freelancers
If you run a business or freelance in the EU, UK, or internationally, you'll likely need a VAT number for tax compliance and cross-border transactions. This guide explains what a VAT number is, who needs one, how to get and validate it, and how to use it for invoicing and compliance.
What Is a VAT Number?
- VAT (Value Added Tax) number: A unique identifier for businesses registered for VAT
- Purpose: Used for tax reporting, invoicing, and cross-border trade
- Format: Varies by country (e.g., DE123456789 for Germany, GB123456789 for UK)
Who Needs a VAT Number?
- Businesses: Most companies in the EU, UK, and many other countries
- Freelancers/sole traders: If you exceed the VAT threshold or sell digital services cross-border
- Digital service providers: May need to register in the EU even if based outside
- Check your country's rules: Thresholds and requirements vary
How Are VAT Numbers Issued and Validated?
- Issued by: National tax authorities (e.g., HMRC in the UK, Finanzamt in Germany)
- How to get one: Apply online or at your local tax office; provide business details and documents
- Validation: Use our VAT Validator or the official VIES EU VAT checker
How to Use a VAT Number
- On invoices: Always display your VAT number (and your client's, if B2B in the EU)
- Cross-border B2B: Enables reverse charge (client accounts for VAT)
- Compliance: Required for VAT returns and tax filings
Real-World Examples
- EU business invoicing another EU business: Both parties list VAT numbers; reverse charge may apply
- UK freelancer working with EU clients: May need to provide a UK VAT number for compliance
- Non-EU business selling digital services to the EU: Must register for EU VAT and get a VAT number
Actionable Tips for VAT Numbers
- Always check client VAT numbers (use our VAT Validator)
- Keep your VAT number up to date on all invoices and records
- Understand reverse charge and compliance requirements for your region
- Store all VAT-related correspondence and documentation
Step-by-Step: Using the Cebofo VAT Validator
- Go to the VAT Validator
- Enter the VAT number (no spaces)
- Click "Validate"
- See if the number is valid and matches the correct country format
- Use the result to confirm client/business status
In-Depth FAQ
Do I need a VAT number for my business?
If you exceed your country's VAT threshold or sell digital services cross-border, yes. Always check local rules.
How do I get a VAT number?
Apply with your national tax authority. Requirements and processes vary by country.
How do I check if a VAT number is valid?
Use our VAT Validator or the official VIES EU VAT checker.
What is the reverse charge mechanism?
A rule allowing B2B clients in the EU to account for VAT themselves, so you don't charge VAT on the invoice.
Can I operate without a VAT number?
Yes, if you're below the threshold and not selling digital services to consumers. But you may lose some B2B clients or face compliance issues.
References & Further Reading
Instantly check any VAT number: VAT Validator