Verified by the Directorate for Legal and Administrative Information (Prime Minister)

What Is an Intra-Community Value Added Tax (VAT) Number?

An intra-Community VAT Number is a unique tax identification number assigned to businesses subject to Value Added Tax (VAT) within the European Union (EU). This number is issued by the tax authority of the country where the company is registered.

Businesses must include their VAT Number on commercial documents, including invoices and quotations, as well as administrative documents such as VAT returns.

Structure of a VAT Number

The format of an intra-Community VAT Number differs by country.

For example, in France, it consists of:

• The country code: FR

• A computer-generated verification key (2 digits)

• The company’s SIREN number (9 digits)

Who Needs an Intra-Community VAT Number?

A VAT Number is mandatory for all businesses required to charge and remit VAT in their country of registration and domiciled in an EU Member State.

Companies exempt from VAT may also voluntarily apply for an intra-Community VAT Number. This is useful for businesses operating under VAT exemptions but engaging in cross-border trade within the EU, as a VAT Number ensures regulatory compliance.

Important: Applying for a VAT Number does not affect a company’s VAT-exempt status.

How to Apply for an Intra-Community VAT Number

The application process depends on whether the company is VAT-liable. Businesses can request a VAT Number through their local tax administration during company registration, including:

• Micro-entrepreneurs

• Sole traders

• Business entities

How to Verify an Intra-Community VAT Number

Companies conducting transactions with EU clients or suppliers should verify VAT Numbers to prevent fraud and mitigate financial risks.

Verification is done via the VAT Information Exchange System (VIES), an official online service that confirms the validity of a VAT Number.

Best Practices for VAT Number Verification:

• Confirm the VAT Number is correctly displayed on invoices before processing transactions.

• If a business partner’s VAT Number is invalid, they must provide a certificate of VAT liability from their tax authority.

• Without valid certification, the transaction may need to be invoiced under the VAT system of the seller’s or buyer’s country.

Handling Invalid VAT Numbers

If an EU partner’s VAT Number is invalid, the partner must:

1. Contact their local tax authority to correct the issue.

2. Provide proof of VAT registration.

In France, this is handled by the Company Tax Office (SIE).

Important: There is no European-wide database allowing searches for VAT Numbers by company name.

When Can a VAT Number Be Invalidated?

Tax authorities may invalidate a VAT Number under certain circumstances, notifying the business of the reason.

Reasons for Invalidation Include:

• Providing false information: Submitting incorrect data when applying for a VAT Number can lead to revocation.

• Failure to update business information: Changes in ownership, address, or status must be reported to avoid invalidation.

• Involvement in VAT fraud: This includes failure to submit VAT declarations, ignoring tax requests within 30 days, repeated incorrect VAT filings, or obstructing audits.

Example of VAT Fraud:
A company is created solely to collect VAT and then dissolved to avoid paying it back to the government. Such actions lead to VAT Number cancellation and potential legal consequences.

• Non-compliance with tax representation: Non-EU companies conducting taxable business in the EU must appoint a tax representative; failure to do so may result in VAT Number revocation.

How to Restore an Invalidated VAT Number

A company whose VAT Number has been invalidated can request reinstatement once the underlying issue is resolved.

Steps to Restore a VAT Number:

1. Correct any false or missing information.

2. Provide accurate details if previous submissions were incorrect.

3. Cooperate with audits and regulatory checks.

4. Submit an official request explaining why the VAT Number should be reinstated.

Once compliance is confirmed by the tax authorities, the VAT Number will be restored promptly.

Who to Contact for Assistance

For help regarding an intra-Community VAT Number, businesses should reach out to their local Company Tax Service (SIE).

Key Takeaways

• A VAT Number is essential for businesses trading within the EU.

• Companies liable for VAT must obtain an intra-Community VAT Number.

• VAT-exempt companies can voluntarily apply for a VAT Number.

• Verifying VAT Numbers through VIES helps prevent fraud.

• VAT Numbers may be invalidated due to fraud, misinformation, or non-compliance.

• Invalidated VAT Numbers can be restored once compliance issues are resolved.