Example
“VAT No. GB123456789” printed under the seller's address on an invoice to a UK client, with the client's own VAT number beside theirs when they are reclaiming the tax.
Also called a VAT registration number or a VAT ID.
What it means in practice
VAT applies outside the US, so it matters when you invoice clients abroad. A registered client will need your number and theirs on the document before they can reclaim the tax.
Rules on which country's VAT applies to cross-border services are their own subject. Check the position for the country you are billing into before you add or omit the tax.
Where it shows up on the paperwork
In your business block on the invoice, alongside your address, and on the client's side too when they are registered and the tax is being reclaimed.
What goes wrong
- Charging VAT before the registration is confirmed.
- Assuming US sales tax rules apply to a client abroad.
- Leaving the client's VAT number off a cross-border invoice that needs it.
Common questions
VAT number vs tax ID: what is the difference?
A VAT number is issued for value added tax and is used in the UK, the EU and many other countries. A US business has an EIN instead, which is a federal tax ID and is not the same thing. If you sell into the EU you may need both on the document.
Do I need a VAT number on an invoice?
Only if you are VAT registered. If you are, it has to be on every invoice you issue. If you are not registered, leave the field off entirely rather than writing none, which looks like an omission.
Do I need a VAT number to invoice a client abroad?
Only if you are VAT registered where you trade. Which country's VAT applies to cross-border services is its own subject and worth checking before you add or omit the tax.
Where does the VAT number go on an invoice?
In your business details near your name and address. Where the client is registered and reclaiming, theirs goes with their details too.
What does a VAT number look like, and how do you get one?
A VAT number is a country code followed by digits: GB followed by nine digits in the UK, DE followed by nine in Germany, and so on across the EU. A company VAT number appears on every VAT invoice it issues and is sometimes called a VAT code or VAT ID. You get one by registering for VAT with the tax authority where you trade, which is required above a turnover threshold and optional below it. The United States has no VAT and no VAT number; a business searching for a VAT number USA is usually looking for its EIN instead.