Intra-Community Value Added Tax Number (VAT Number)

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

What Is an Intra-Community Value Added Tax Number?

An intra-Community Value Added Tax Number (VAT Number) is an individual tax identification number assigned to companies subject to Value Added Tax (VAT) within the European Union (EU). This number is issued by the tax authorities of the country where the business is domiciled.

The company must include its VAT Number on commercial documents such as invoices, quotations, and administrative documents like VAT returns.

Structure of a Value Added Tax Number

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

For example, in France, the number consists of:

  • The country code FR
  • A computer-generated verification key (2 digits)
  • The SIREN number of the company (9 digits)

Who Needs an Intra-Community VAT Number?

A Value Added Tax Number is mandatory for any company that is required to charge and remit VAT in its country of registration. The business must also be domiciled in an EU Member State.

However, a company that is VAT-exempt may voluntarily apply for an intra-Community VAT Number. This applies to businesses that operate under VAT exemptions but engage in cross-border trade within the EU, requiring a VAT Number to comply with regulations.

Important Notice

A company benefiting from VAT exemption will not lose its exemption status if it applies for an intra-Community VAT Number.

How to Apply for an Intra-Community VAT Number

The process of obtaining a Value Added Tax Number depends on whether the company is liable for VAT or not.

Businesses can apply for a VAT Number through their local tax administration at the time of company registration, whether they are:

  • A micro-entrepreneur
  • A sole trader
  • A business entity

How to Verify an Intra-Community VAT Number

Companies engaged in business transactions with EU customers or suppliers should verify the validity of a VAT Number to prevent fraud and avoid financial risks.

This verification can be done using the VAT Information Exchange System (VIES), an official online service that checks the legitimacy of a Value Added Tax Number.

Best Practices for VAT Number Verification

  • Always confirm that the VAT Number appears correctly 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.
  • If they fail to do so, the transaction may need to be invoiced under the French VAT system (or the VAT system of the buyer’s country).

What to Do If an EU Partner’s VAT Number Is Invalid

If the intra-Community VAT Number of an EU partner is invalid, the partner must:

  1. Contact their local tax authority to correct the issue.
  2. Provide proof of their VAT registration.
  3. If the company is based in France, the responsible authority is the Company Tax Office (SIE).

Important: There is no European database that allows searching for an intra-Community VAT Number by company name or business name.

When Can a VAT Number Be Invalidated?

A company’s Value Added Tax Number may be invalidated by the tax authorities under specific circumstances. The business will be notified of the reason for the invalidation.

Reasons for VAT Number Invalidation

  1. Providing False Information
    • If a company provides incorrect information when applying for a VAT Number, it may be revoked.
  2. Failure to Update Business Information
    • Companies must notify tax authorities of any changes, such as ownership, address, or status. Failure to do so can lead to invalidation of the VAT Number.
  3. Involvement in VAT Fraud
    • If a company is directly or indirectly involved in VAT fraud within France or another EU country, its intra-Community VAT Number may be invalidated.
    • Fraudulent activities include:
      • Failure to submit VAT declarations
      • Not responding to tax authority requests within 30 days
      • Providing repeated incorrect VAT information
      • Obstructing tax audits or investigations

Example of VAT Fraud

A company is created for the sole purpose of collecting VAT, then dissolved to avoid paying the tax back to the government. This is a fraudulent scheme and will lead to VAT Number cancellation and potential legal consequences.

  1. Non-Compliance with Tax Representation
    • A non-EU company 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 Value Added Tax Number

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

Steps to Restore a VAT Number

  • Correct any false or missing information
  • Provide accurate data if invalidation was due to repeated submission of incorrect details
  • Cooperate with tax audits and regulatory checks
  • Submit an official request justifying why the VAT Number should be reinstated

Once the tax authorities confirm compliance, the Value Added Tax Number will be restored without delay.

Who to Contact for Assistance?

For inquiries or assistance regarding an intra-Community VAT Number, businesses should contact their local Company Tax Service (SIE).

Key Takeaways

  • A VAT Number is essential for businesses trading in the EU
    – Companies liable for VAT must obtain an intra-Community VAT Number
    –  VAT-exempt companies can apply voluntarily for a VAT Number
    – Verifying VAT Numbers through VIES prevents fraud
    – VAT Numbers can be invalidated due to fraud, misinformation, or non-compliance
    –  Invalidated VAT Numbers can be restored once compliance issues are resolved