The VAT identification number ( UID ) is an individual identifier that companies within the European Union (EU) need for VAT purposes. It plays an important role in cross-border trade within the EU and facilitates the correct taxation of deliveries and services.

Why do you need a VAT number?

  • Cross-border trade: The VAT number makes it possible to correctly process VAT within the EU. Companies must provide this number when doing business with other EU countries.
  • Tax documentation: It helps the tax authorities to track business transactions and collect VAT correctly.
  • Invoicing: The VAT number must be stated on invoices to business customers in another EU country.

Applying for the UID number

  • National tax authority: Companies can apply for the UID number in their home country from the relevant tax authority or tax office.
  • Online form: In many countries, it is possible to apply via an online form.
  • Documents: Depending on the national regulations, certain documents and information must be provided in order to obtain the UID number.

Verification of the UID number

  • Online database of the European Commission: The validity of a UID number can be checked via the electronic system VIES (VAT Information Exchange System).
  • National authorities: In some cases, it may also be possible to verify the number via the national tax authorities.

Conclusion

The UID number is an indispensable tool for companies trading within the EU. It not only facilitates international trade, but also helps to correctly collect and monitor VAT. Applying for it is usually straightforward and checking its validity can easily be done online. Every company doing business within the EU should familiarize itself with the VAT number and the associated obligations.

Finances

On this website, calculations, formulas and sample calculations with simple explanations are provided online free of charge by the author.