You get a VAT number by registering with the tax authority of the country where your business is established. In many countries that follows on from registering the business itself, so you do not file a separate application: the tax authority assesses whether you are a taxable person for VAT and issues the number. Whether you have to register at all can depend on a national turnover threshold. In this article you can read what a VAT number is, how the registration works, how it runs in the Netherlands as a worked example, and what applies if you need a number in another country.
Table of contents
What is a VAT number?
A VAT number is your identification number for value added tax. Within the EU it starts with a two-letter country code followed by digits, and it has to appear on the invoices you issue. It is also what your customer uses to check that you are VAT-registered before applying the 0% rate on a cross-border supply. If you are looking for a number you already have rather than a new one, see our guide on finding your own VAT number.
How do you get a VAT number?
The route differs per country, but the pattern is the same almost everywhere:
- Register the business with the trade register or the tax authority, stating what your business actually does.
- The tax authority assesses whether you are a taxable person for VAT, based on those activities and, in several countries, on an expected turnover threshold.
- You receive the number, by post or in an online portal. How long that takes varies from a few days to several weeks.
Two things are worth knowing before you start. Registration is often not optional above the threshold, and in some countries you can register voluntarily below it, which lets you reclaim VAT on your purchases. And the assessment follows your described activities, so an incomplete or vague description of what you do is the most common cause of delay.
The Dutch route as an example
In the Netherlands you do not apply for a VAT number separately. You register your business with the Chamber of Commerce, the KVK, which passes your details to the tax authority. If you qualify as an entrepreneur for VAT you receive your numbers by post, usually within about ten working days. If you cannot register with the KVK, you request a number directly from the tax authority using the form for a starting business. More detail is available at the KVK page about the VAT number, in Dutch.
One Dutch particularity catches people out: since 2020 you get two numbers rather than one.
| VAT identification number (btw-id) | For customers and suppliers. This is the one on your invoices and website, and it contains no citizen service number, so it is the privacy-safe one to publish. |
| Turnover tax number (omzetbelastingnummer) | For dealings with the tax authority only, such as filing your VAT return. Not for external use. |
Registering in a country where you are not established
Selling into another EU country can create an obligation there as well, and that is a separate registration with that country’s tax authority rather than an extension of your own number. For cross-border sales to consumers there is an alternative: the Union One Stop Shop lets you register in one member state and report those sales centrally, instead of registering in every country you sell to. For supplies to businesses the reverse charge usually applies, so no local registration is needed. Which route fits depends on what you sell and to whom, so check it before you invoice rather than after.
Benefits and points to watch
- You deduct the VAT on your business purchases from the VAT you charge on your sales.
- You can make intra-Community supplies within the EU at the 0% rate, provided your customer’s number checks out.
- You look established to customers, and a missing VAT number on an invoice is a reason for them to query it.
Do check that your business is genuinely liable for VAT, and pass your details on completely and correctly at registration, because errors and gaps cause delay. Once you have the number, put it on your invoices and website from the first invoice onwards.
Automating your VAT administration with TriFact365
Once you have a VAT number the VAT administration starts: processing purchase invoices and preparing your return. TriFact365 automates that first part. The software recognises your purchase invoices, VAT included, and prepares a booking proposal with a general ledger account and VAT code per line in your own TriFact365 portal. After your check and approval the entry goes to your accounting package. TriFact365 does not apply for numbers and does not file your return, but it does keep the underlying records complete. See how processing incoming invoices works.
Frequently asked questions about getting a VAT number
That differs per country, from a few days to several weeks. In the Netherlands the numbers usually arrive by post within about ten working days of the Chamber of Commerce registration.
No. The company registration number identifies your business in the trade register; the VAT number identifies you for value added tax. They are issued by different bodies and often at different moments.
That depends on the country. In the Netherlands you still receive both a VAT identification number and a turnover tax number even if you use the small business scheme, because the number and the scheme are separate things.
Yes, through a non-established registration with that country’s tax authority. For cross-border sales to consumers the Union One Stop Shop can replace registering in each country separately.
The VAT identification number, the one meant for external use. In the Netherlands that is the btw-id rather than the turnover tax number, which is only for correspondence with the tax authority.
No. Registration runs through your national tax authority. TriFact365 automates the VAT administration that follows, by recognising purchase invoices and preparing them as a booking proposal for your accounting package.
In closing
Getting a VAT number is usually a matter of registering your business properly and letting the tax authority do the rest. Describe your activities accurately, check whether a threshold applies to you, and find out early whether selling abroad creates an obligation elsewhere. Put the number on your invoices from the first one, and keep the VAT administration behind it current.
