What is VAT identification number? Meaning and explanation

After registering with the Chamber of Commerce, a VAT-registered business receives two numbers from the Tax Administration: the VAT identification number and the VAT tax number (omzetbelastingnummer). The VAT ID, for example NL123456789B01, is used with customers and suppliers: on invoices, quotes and the website. It never contains a citizen service number (BSN) and is suitable for public use. The VAT tax number, for example 123456789B01, is only used for contact with the Tax Administration; for a sole trader it contains the BSN.

For a firm, the VAT ID on an invoice is more than a formality. It is a mandatory invoice detail, and for business within the EU the VAT treatment depends on the customer having a valid VAT ID. You check a VAT ID in VIES; searching there with a VAT tax number returns an error. A non-existent or deviating number on a purchase invoice may indicate an error or a fraudulent invoice.

Autoboeker checks VAT numbers on invoices via VIES as a standard step in AI processing, for all four connected packages. Together with detecting within and outside the EU, that check forms the basis for correct VAT treatment of international invoices, such as reverse charge and intra-community acquisitions.