Is the EU VAT number the same as the EORI number?
The EU VAT number and the EORI number are two identification numbers that are often needed to understand when trading in the EU. However, many people are not aware of the difference between the two, and some even mistakenly believe that they are the same number. To help you better understand the relationship between the two, we will explain them in detail.
First of all, let's explain what a VAT number and an EORI number are, VAT stands for "Value Added Tax" and it is a consumption tax, paid by the end consumer. In the European Union, businesses that sell goods and provide services usually need to register with the national tax authorities to obtain a VAT number in order to pay taxes. EORI stands for Economic Operators Registration and Identification and is used to identify companies or individuals engaged in cross-border trade to ensure smooth customs clearance during the import and export process. It is used to identify enterprises or individuals engaged in cross-border trade so as to ensure their smooth customs clearance in the import and export process.
Although VAT and EORI numbers are both identification numbers related to trading activities, they are different in terms of scope and function: VAT numbers are mainly used for tax payment and filing to ensure that the sale of goods and services are covered by taxes, whereas EORI numbers are mainly used for customs declaration and clearance to ensure that goods can be imported and exported smoothly. Therefore, it can be seen that their functions are different and not the same.
In addition, according to EU regulations, obtaining a VAT number does not automatically mean obtaining an EORI number, as they are applied for separately and are issued by different organizations or departments. Therefore, even if you have obtained a VAT number, if you still intend to engage in cross-border trade, you will need to apply for an EORI number to ensure the smooth clearance of your goods.
Overall, although both the EU VAT and EORI numbers are identification numbers closely related to trading activities, they are distinctly different in terms of their functions and application procedures: the VAT number is mainly used for tax payment and filing of tax returns, while the EORI number is mainly used for customs declarations and clearance procedures. Therefore, when engaging in cross-border trade, enterprises and individuals need to be aware of the differences between the two and ensure that they apply for and use the two numbers in a timely manner to ensure the smooth conduct of trade activities.