VAT Registration Numbers
Once VAT registration has been achieved your business will be provided with a VAT number that other businesses need to reclaim the tax.
VAT or value added tax is a percentage added to good and services you charge to consumers and businesses and only other businesses that are registered can reclaim from HMRC.
What is a VAT Number ?
VAT numbers in the EU consist of 15 alphanumeric characters with the first two indicating the country the business is registered in - eg: GB for the UK. All the countries in the EU are currently as follows with their 2 letter country codes:
- AT - Austria - 9 characters always starting with a U
- BE - Belgium - 10 characters (9 prior to April 2005)
- BG - Bulgaria - 9 or 10 characters
- CY - Cyprus - 9 characters - last character always a letter
- CZ - Czech Republic - 8, 9 or 10 characters
- DE - Germany - 9 characters
- DK - Denmark - 8 characters
- EE - Estonia - 9 characters
- EL - Greece - 9 characters
- ES - Spain - 9 characters
- FI - Finland - 8 characters
- FR - France - 11 characters
- GB - United Kingdom
- HU - Hungary - 8 characters
- IE - Ireland - 8 characters
- IT - Italy - 11 characters
- LT - Lithuania - 9 or 12 characters
- LU - Luxembourg - 8 characters
- LV - Latvia - 11 characters
- MT - Malta - 8 characters
- NL - The Netherlands - 12 characters with the 10th character always a B
- PL - Poland - 10 characters
- PT - Portugal - 9 characters
- RO - Romania - between 2 and 12 characters
- SE - Sweden - 12 characters
- SI - Slovenia - 8 characters
- SK - Slovakia - 10 characters
You can check if an EU or European number is valid on the EU site here
Checking a UK VAT Number is Correct
The actual number is not a random set of numbers but a formula that can be checked to see if the number is valid. If you don't have a valid number then your business can not re-claim the VAT.
For UK VAT numbers do the following exercise: Excluding the first 2 letters, list the numbers vertically and multiply each by a value starting with 8 and ending with 2. Then add up all the sums you have and deduct 97 from the sum until the answer is negative. The negative sum should be equal to the last 2 digits of the VAT number.
So for example, the VAT number for HSBC bank is GB 365684514 the calculation is:
- 3 x 8 = 24
- 6 x 7 = 42
- 5 x 6 = 30
- 6 x 5 = 30
- 8 x 4 = 32
- 4 x 3 = 12
- 5 x 2 = 10
The total of the above calculation is 24+42+30+30+32+12+10=180
Deduct 97 twice from this to make the result negative and the result is 180-97-97=-14 which is the same as the last two digits so the VAT number is valid.