The Difference Between a VAT Number and an EORI Number

If your business is involved in cross border trade with the European Union, there are two numbers you’re almost guaranteed to encounter: the VAT number and the EORI number.

Both are essential for compliance, but they serve entirely different purposes. One is for tax while the other is for customs. Unfortunately, this distinction isn’t always clear. This is more so if you’re a non EU seller, a first time importer, or managing logistics on behalf of clients.

At Global Trade Business, we often speak to businesses that:

• Registered for a VAT number but had shipments held at customs due to missing EORI documentation.

• Mistakenly believed an EORI number covered VAT obligations.

• Delayed market entry because they weren’t sure which number to apply for first

This confusion can lead to serious consequences: blocked shipments, fines, or even loss of inventory. So what’s the difference between the two numbers? How can Global Trade Business help you get both quickly and correctly?

What Is a VAT Number?

A VAT number is a unique identifier assigned to a business that is registered for Value Added Tax (VAT) in a particular country. VAT is a consumption tax applied to goods and services at each stage of the supply chain. It is collected by businesses and passed on to tax authorities.

You should think of the VAT number as your company’s tax ID for VAT purposes. It proves that your business is registered with the local tax authority and is legally allowed to:

• Charge VAT to customers.

• Reclaim VAT on eligible business expenses.

• File VAT returns to report and pay what you owe.

Who Needs a VAT Number?

You’ll need a VAT number if your business:

• Sells taxable goods or services in the EU.

• Imports goods into the EU.

• Holds stock in an EU country (e.g. through Amazon FBA).

• Exceeds the distance selling thresholds for cross border B2C sales within the EU.

• Wants to recover VAT on EU expenses.

This applies to both EU based and non EU businesses. For example, if you’re a U.S. company selling physical goods to consumers in France, you may need to register for French VAT, even if you don’t have a physical presence there.

VAT Number Format Examples

Every EU country issues its own VAT numbers. Most start with a two letter country code, followed by a string of digits or characters. Let’s look at a few examples:

• Germany: DE123456789

• France: FRXX999999999 (includes a two letter key based on an algorithm)

• Italy: IT12345678901

• Netherlands: NL123456789B01

These formats matter, especially for cross border transactions where validation tools like the EU VIES database are used to verify the legitimacy of your VAT number.

What Is a VAT Number Used For?

Your VAT number isn’t just for show. It plays a central role in staying compliant with EU tax rules.

A VAT number is used for:

1. Charging VAT: When you invoice customers within the EU, you may need to add VAT, depending on whether they’re businesses or consumers, and where they're located.

2. Reclaiming VAT: If you buy goods or services in the EU for business use, your VAT number allows you to reclaim input VAT through regular returns.

3. Filing VAT Returns: Your VAT number ties to your VAT account in each country where you’re registered. You’ll use it when submitting monthly or quarterly returns showing VAT collected and paid.

4. Cross border B2B Sales (Reverse Charge): For sales between VAT registered businesses in different EU countries, the reverse charge mechanism often applies. This means the customer accounts for VAT, and the seller doesn’t charge it. This is possible only if both parties have valid VAT numbers.

5. Marketplaces & Platforms: Platforms like Amazon, Etsy, and Shopify often require valid VAT numbers to enable certain features or comply with marketplace VAT collection rules.

If you’re trading in multiple EU countries, you might need more than one VAT number. One for each country where you store goods, exceed thresholds, or have a taxable presence.

What Is an EORI Number?

An EORI number (short for Economic Operators Registration and Identification number) is a unique ID assigned to businesses that trade goods across EU borders. It is used to identify your company when dealing with EU customs authorities.

In simple terms, if you’re importing into or exporting goods out of the European Union, you need an EORI number. Without it, customs won’t process your shipments, and your goods could be delayed, held, or returned.

At Global Trade Business, we’ve seen too many shipments get stuck at ports because sellers weren’t aware of this requirement or assumed their VAT number was enough. That’s why we guide importers, eCommerce sellers, and logistics teams through EORI registration as part of our customs compliance solutions.

Who Needs an EORI Number?

You need an EORI number if you:

• Import goods into the EU.

• Export goods out of the EU.

• Act as a declarant for customs filings.

• Use a customs broker who files under your business name.

This applies to both EU based and non EU companies. 

The first point of entry into the EU determines where to apply. If your goods arrive in France, you’ll apply through French customs. If they arrive in Germany, you’ll use the German system.

EORI Number Format Examples

Just like VAT numbers, EORI numbers follow a country specific format, usually combining:

• The country code (two letters).

• Your VAT number or company ID.

• A suffix or sequence of digits.

Examples:

• United Kingdom: GB123456789000 (for businesses that used to trade with the EU  before Brexit)

• Italy: IT123456789012

• Germany: DE123456789

These numbers are stored in a shared EU wide database, so customs authorities across member states can instantly identify your business and track shipments.

What Is an EORI Number Used For?

Your EORI number plays a critical role in international trade. It is used for:

• Filing Customs Declarations: Every time you ship goods across EU borders, your EORI number is required on import and export documents. It identifies you as the party responsible for the transaction.

• Import/Export Documentation: Without an EORI, you can’t complete the Single Administrative Document (SAD), commercial invoices, or customs entry forms required by EU customs.

• Customs Clearance: EORI numbers help customs authorities assess duties, taxes, and import restrictions. Using your EORI, they can verify your trade history and link it to ongoing declarations.

• Tracking Goods: The EU uses EORI numbers to track the movement of goods between borders. It ensures traceability and transparency for regulatory and security purposes.

A common mistake we see is businesses registering for a VAT number and assuming that’s all they need. But these two numbers are completely separate.

• A VAT number covers tax compliance within an EU country.

• An EORI number enables movement of goods through customs across the EU.

In fact, many EU customs portals will not accept a VAT number in place of an EORI. Even if the formats look similar, they serve entirely different functions.

We’ve helped hundreds of sellers register for the right EORI in the right country (whether it’s Germany, France, the Netherlands, or beyond). Our Solutions team handles paperwork, liaises with customs, and ensures your number is accepted before your goods arrive.

 How Long Does It Take?

• Most EORI numbers are issued within 1 to 5 business days after applying.

• Some countries may take longer or request supporting documentation such as business registration certificate, proof of VAT registration (if available), and Power of attorney if applying through a third party

Do you need it urgently? Let us know. We can prioritize your case and assist with express processing where available.

Whether you're preparing your first shipment or scaling up your EU operations, don’t let customs compliance slow you down. Global Trade Business is here to simplify the process so that you can focus on what you do best: growing your business.

Key Differences Between VAT and EORI Numbers

Feature	VAT Number	EORI Number
Purpose	Tax identification for VAT	Customs identification for import/export
Used for	Charging VAT, filing returns	Submitting customs forms, tracking goods
Issued by	National tax authority	National customs authority
Required when	Selling taxable goods/services in the EU	Moving goods across EU borders
Format	Country specific, e.g. DE123456789	Often includes VAT base, e.g. GB123456789000
Needed by	EU and non EU sellers selling in the EU	Importers/exporters trading with the EU

Tips to Stay Compliant

Here are some quick tips we give our clients to avoid delays and penalties:

• Always double check formats: Use the EU’s VIES VAT number checker and the EORI database before shipping

• Register before trading: Don’t wait until the goods are at the port.

• Use consistent details: Your legal entity name and address must match across VAT, EORI, and shipping documents.

• Keep both numbers active: Let us know if you change your company structure. We’ll help keep your registrations compliant.

• Work with experts: Mistakes in customs or tax registration can lead to delays, blocked shipments, or fines.

At Global Trade Business, we’ve helped hundreds of non EU companies register for both VAT and EORI numbers (often in multiple countries at once). We know how the systems differ, what customs authorities look for, and how to keep you selling.

Are you ready to avoid customs delays and VAT fines? Request a call with our team. We'll assess your needs, explain your options, and get you compliant fast!