If you want to send invoices, it is important that you state a correct VAT number. But when do you have to mention it, and what is a VAT number in the first place? In this article we answer those questions.
A VAT number, what is it?
Anyone who registers with the tax authorities receives a VAT number. In the Netherlands, VAT numbers
always start with “NL”, followed by nine digits, and often end with B01. Each country has its own
structure: a Belgian VAT number looks like BE9876543210, and a Dutch one like NL987654321B01.
How do you check a VAT number?
If you do business with another company, it is important that this company’s VAT number is correct. That matters especially when the VAT is reverse-charged. You can check a VAT number in the following ways:
- Call the tax authority.
- Check any European VAT number on the VIES VAT number validation website, operated by the European Commission.
- Many invoice software packages also let you check a VAT number automatically as you enter it.
Stating a VAT number on an invoice: when is it required?
Invoices that you send yourself must always contain your VAT number. The tax authorities require it, along with the other mandatory details such as the breakdown of VAT amounts and the invoice number.
You only have to state the recipient’s VAT number when the VAT is reverse-charged — in that case the number must appear on the invoice. If you invoice abroad, stating the recipient’s VAT number is always mandatory.
Setting it up in Invoice Office
The rate and the treatment travel together on the tax code, and a customer who is always handled differently can carry their own sales tax code — see how can I change the VAT.