When Do I Need a Tax Number and When a VAT ID?

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

Note: We do not provide tax advice. If you’re unsure, please consult a certified tax advisor.