If you’re a business involved in cross-border trade, especially within the European Union, you’ve likely heard the term VAT number. But what exactly does it mean, and why is it so important?
In this guide, TJ Best China Freight explains the basics of VAT registration, who needs it, how to obtain it, and why it matters for international shipping and customs clearance.
1. What Is a VAT Number?
A VAT number is an official identifier issued to businesses that are registered for Value Added Tax. It is used on invoices, customs declarations, and tax returns to prove that your business is authorized to collect and remit VAT.
Whether you’re shipping goods to Europe or selling digital products internationally, knowing when and how to use your VAT registration number is crucial for smooth logistics.
2. Why Do You Need a VAT Number?
There are several reasons businesses are required to obtain a VAT number:
- Legal obligation: Required once your turnover exceeds a country’s VAT threshold.
- International shipping: Necessary for customs declarations and clearance.
- Tax compliance: Lets you collect VAT and file accurate tax returns.
- Claiming input VAT: Enables you to recover VAT on business expenses.
When you work with TJ Best China Freight, we may request your VAT number to ensure seamless delivery, especially for services like DDP (Delivered Duty Paid).
3. What Does a VAT Number Look Like?
Each country formats its VAT number differently. Here are a few common examples:
Before shipping, our logistics team can help you verify any VAT number using official databases such as the EU’s VIES system.
4. When Is a VAT Number Required?
You’ll need one if:
- You exceed the VAT threshold for sales in your home country.
- You sell goods or services across EU borders.
- You store or fulfill inventory in another country.
- You import goods into Europe from abroad.
At TJ Best China Freight, we guide clients through VAT and EORI requirements during international shipping and fulfillment.
5. How to Get a VAT Number
To register for a VAT number:
- Apply through your local or foreign tax authority.
- Provide necessary documents like business registration and proof of trade.
- Wait for the number to be issued (typically takes 2–6 weeks).
Need help? Our team partners with tax professionals who can support your registration process from start to finish.
6. VAT Number vs. EORI Number
These two numbers serve different purposes:
| Type | Use Case |
|---|---|
| VAT Number | Tax reporting and invoicing |
| EORI Number | Customs clearance for imports/exports |
If you’re shipping to the EU, TJ Best China Freight ensures you have both when required.
7. Where You Use a VAT Number
A VAT number is needed for:
- Creating tax-compliant invoices
- Customs declarations
- Submitting VAT returns
- Validating buyer/seller tax status
Working with TJ Best China Freight ensures your number is correctly applied at every stage of the shipping process.
8.Risks of Not Having One
Without a valid VAT identifier, you may:
- Face customs clearance delays or penalties
- Be unable to reclaim VAT on purchases
- Lose access to marketplaces (e.g., Amazon EU)
- Be non-compliant with tax authorities
TJ Best China Freight helps clients avoid these issues by checking compliance before shipments leave the origin country.
9. Final Thoughts
Now that you understand what is a VAT number, you can see how important it is for global trade. Whether you’re selling across borders, importing goods into the EU, or setting up warehousing, a valid VAT number keeps your business compliant and competitive.
TJ Best China Freight helps simplify international shipping by offering end-to-end logistics support—including VAT guidance and DDP delivery services.
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FAQ:
Q1.What is a VAT number?
A VAT number is a unique identifier assigned to businesses that are registered to collect Value Added Tax. It’s used for invoicing, tax reporting, and customs.
Q2.Why do I need a VAT number?
You need it to legally charge VAT, file VAT returns, import/export goods, and trade across borders, especially in the EU and UK.
Q3.How do I register for a VAT number?
Apply through your country’s tax authority. You’ll typically need business documents and proof of trade. Registration can take 2–6 weeks.
Q4.Do I need a VAT number for international shipping?
Yes, especially for importing goods into VAT-registered countries or selling to EU-based customers.
Q5.What happens if I don’t have a VAT number?
You may face customs delays, fines, or lose the ability to reclaim VAT. Many marketplaces also require it for EU sales.