Getting a VAT Identification Number

Getting a VAT Identification Number

VAT stands for Value Added Tax and happens to be a consumption tax which is applied on goods and services. Identical to Central Service Tax (SCT) and the TIN (Taxpayer Identification Number Registration Number, registration of VAT is compulsory for all manufacturing businesses and results in acquiring a VAT identification number .One could call it an indirect tax. For example when any product is manufactured by a company, various supplies are needed and tax is paid for each of them. After the product has been reached its final finished state ready to be sold, the person who shall buy it will be paying the applicable VAT.

The percentage of the tax is applied throughout the different stages of production to the final stage. The amount of tax that is usually paid by the taxpayer is the cost of the product.

Value added tax was originally implemented in the United Kingdom in 1977. In the following decades, the legislation was modified in fragments number of times. Especially as the European Economic Community flourished and evolved.

VAT identification number properly known as VAT registration number, is an alphanumeric identifier which consists of up to 15 characters. VAT identification number is a unique number that identifies a taxable business/ person or non-taxable legal entity which is registered for VAT implementing a Value Added Tax System. This number is different for every company as well as countries. Out of the 15 characters, the first two represent the country code.

There is a particular search engine for VAT identification number called the VAT information exchange system which is used to check the soundness and strength of the VAT identification number. Owned by the European Commission, all the data of this search engine is retrieved brining in use the VIES tool. VIES is available in 23 different languages of the European Union.

Those people and businesses which are carrying out an economic activity need to get themselves registered and get a VAT identification number.

Following are the steps that will provide help to you in indicating the basic procedural steps for a VAT identification number.

  • First you need to locate the Central Tax Office of your city where there is also a VAT registration department.
  • Get a registration form from the VAT office and fill it out.
  • Certain documents shall be required for submission which will include:
  1. Professional Tax registration certificate
  2. Address and identification proof of the proprietor/partner or director.
  3. Four passport-sized photographs of the proprietor/partner or director.
  4. Bank account number and PAN card number of the proprietor/partner or director.
  5. Central Sales Tax registration certificate (Form A).
  6. A copy of the rental agreement of the premises where business is conducted.
  7. Details of the business activities.
  8. In case of partnership firms, partnership deed needs to be submitted.
  9. In case of a Private Limited Company, Memorandum of Association and Articles of Association.
  10. The process of verification that follows the application involves the local VAT authorities inspecting your business premises at a set time by them.
  11. Once the inspection is over, you need to pay the VAT identification number


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