VAT Number
A VAT number (Value Added Tax number) is a unique identifier issued by tax authorities to businesses that are registered for VAT. It is used to track and report VAT on goods and services sold or purchased, ensuring compliance with tax regulations both within the UK and internationally.
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What is a VAT Number?
A VAT number identifies a business as being authorised to collect VAT on behalf of the government. In the UK, it is issued by HM Revenue & Customs (HMRC) once a company registers for VAT. The number typically begins with the letters GB, followed by nine digits (for example, GB123456789).
Businesses must register for VAT if their taxable turnover exceeds the VAT threshold, which is currently £90,000 per year (as of 2025). Smaller businesses may also register voluntarily to reclaim VAT on business expenses.
Why a VAT Number is Important
A VAT number allows businesses to:
- Charge VAT on the sale of goods and services.
- Reclaim VAT on purchases and expenses related to their business activities.
- Trade internationally with confidence, as VAT numbers are used to verify legitimate VAT-registered entities across the UK and EU.
Displaying the VAT number on invoices and official documents helps ensure transparency and compliance with UK tax law.
VAT Numbers and Importing Goods into the UK
When importing goods into the UK, businesses often need both a VAT number and an EORI number (Economic Operators Registration and Identification).
- The EORI number identifies the business to UK Customs for import and export declarations.
- The VAT number is used for tax reporting and reclaiming import VAT on goods brought into the UK.
For example, if a UK-based importer brings in goods from an overseas supplier, they will use their EORI number to clear the goods through Customs and their VAT number to account for any VAT due. Import VAT can typically be reclaimed through the VAT return if the goods are for business use.
At Barrington Freight, we specialise in making your importing and exporting straightforward. From customs clearance to finding the right commodity codes, our expert team is here to assist. Don’t let the complexities of global trade hold you back. Reach out to Barrington Freight for efficient and reliable shipping solutions.
Selling Goods from Overseas to UK Customers
If a business sells goods from outside the UK directly to UK customers, it may still need a UK VAT number.
- Overseas sellers that store or sell goods within the UK must usually register for VAT and charge it at the point of sale.
- For online marketplaces, such as Amazon or eBay, the marketplace operator is often responsible for collecting and remitting VAT on behalf of overseas sellers.
This system ensures that VAT is paid correctly on all sales to UK consumers, regardless of where the seller is based.
HMRC’s guidance on VAT and overseas goods sold directly to customers in the UK provides detailed information on when VAT registration is required for non-UK sellers.
How to Check a VAT Number
Businesses can verify the validity of a VAT number using:
- The HMRC VAT number checker for UK numbers.
- The EU VIES (VAT Information Exchange System) for EU-based VAT numbers.
Verification helps prevent fraud and ensures that VAT can be correctly reclaimed on cross-border transactions.
Key Points to Remember
- A VAT number is required for any UK business that meets the VAT threshold or trades internationally.
- It must appear on all VAT invoices and relevant business documentation.
- Importers will usually need both a VAT number and an EORI number when bringing goods into the UK.
- Overseas sellers may also need to register for VAT if selling directly to UK customers.
Further Resources
- HMRC: VAT and overseas goods sold directly to customers in the UK – https://www.gov.uk/guidance/vat-and-overseas-goods-sold-directly-to-customers-in-the-uk
- SumUp: What is a VAT Number? – https://www.sumup.com/en-gb/invoices/dictionary/vat-number/
About the Author
Simon Poole began his career in production planning, quickly rising to manage 24-hour manufacturing lines and oversee a team of 140 staff. In 2007, he joined Barrington Freight, where he brought his operational expertise into the logistics sector. Appointed Operations Director in 2021, Simon now leads all day-to-day operations, including sea, air and European freight, working closely with clients and partners worldwide.
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