When Do I Need a Tax Number and When a VAT ID?
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Note: This article is only relevant for sellers based in Europe.
In your Tentary account, you can enter both a national tax number and a VAT identification number (VAT ID). Not sure if a tax number is sufficient, or when you need a VAT ID? This article provides clarity.
Tax Number & VAT ID
You receive your national tax number from the tax office once you register as self-employed or register your business. It is used for tax identification and is a required detail on invoices.
A VAT ID, on the other hand, is needed when doing business with other companies (B2B) within the EU. It is especially required for applying the reverse-charge mechanism within the EU.
You can apply for a VAT ID at the tax office or through the relevant Authority. It is used in addition to your tax number and must appear on invoices if you are liable for VAT. Even as a small business owner (exempt from VAT), you can still apply for a VAT ID.
The table below shows when you need a local tax number and when a VAT ID is mandatory:
| Invoice to | Individuals | Businesses |
|---|---|---|
| Buyer in the same country | Tax Number / VAT ID | Tax Number / VAT ID |
| Buyer within the EU | Tax Number / VAT ID | VAT ID |
| Buyer outside the EU | Tax Number / VAT ID | Tax Number / VAT ID |
Where to enter the numbers
Open your Settings and click Billing address in the Account area. In the Taxes section, enter your Tax number and, if you have one, your VAT identification number. Then click Save changes.
When you save, Tentary automatically checks your VAT ID against the EU database. If it cannot be confirmed, Tentary does not save it and shows a notice. The European checking service sometimes has technical problems. If you are sure your number is correct, try again in a few hours.
Under Who can buy from you, the page shows right away who you can sell to with your details and whether you can issue invoices. Without a tax number and without a VAT ID, you can only sell to individuals and cannot issue invoices.
Note: We do not provide tax advice. If you’re unsure, please consult a certified tax advisor.
Last updated October 13, 2026