Comparison Guide
EIN vs ABN Compared
Understand the difference between a US EIN and a Australia ABN. Both are tax identification numbers, but they serve different countries and purposes.
Australia entrepreneurs expanding into the US market frequently encounter both EINs and ABNs. Understanding the difference between these two identification numbers is essential for operating legally in both jurisdictions. This guide provides a complete comparison, explains when you need each number, and shows how Australia business owners can obtain a US EIN.
The key distinction is jurisdiction. An EIN is issued by the US Internal Revenue Service (IRS) for US federal tax purposes. A ABN is issued by Australian Business Register (ABR) for Australia tax purposes. Neither number is valid in the other's jurisdiction.
Definition
What Is an EIN?
An EIN (Employer Identification Number) is a 9-digit tax identification number issued by the US Internal Revenue Service (IRS) to businesses operating in the United States. The format is XX-XXXXXXX (for example, 12-3456789). The IRS issues approximately 5 million EINs per year.
Every US business entity needs an EIN for federal tax filing, opening bank accounts, hiring employees, and accepting payments. The EIN is free to obtain from the IRS and is permanently assigned to the entity once issued.
For a complete explanation, see our guide on what is an EIN.
Key EIN Facts
ABN
What Is a ABN?
A ABN (Australian Business Number) is a 11-digit identification number issued by Australian Business Register (ABR) in Australia. It uses the format 11 digits (e.g., 51 824 753 556). The ABN serves as the primary business identification and GST registration in Australia.
The ABN (Australian Business Number) is an 11-digit identifier issued by the Australian Business Register (ABR), operated by the Australian Taxation Office (ATO). The ABN was introduced on July 1, 2000, as part of Australia's New Tax System. Every business operating in Australia needs an ABN. It is used for GST (Goods and Services Tax) registration, invoicing, tax reporting, and business-to-business transactions. The ABN is free to obtain and can be applied for online at abr.gov.au. Australia has approximately 2.5 million active ABNs.
Key ABN Facts
- Issued by: Australian Business Register (ABR)
- Format: 11 digits (e.g., 51 824 753 556)
- Country: Australia
- Purpose: business identification and GST registration
Comparison
EIN vs ABN: Side-by-Side
| Factor | EIN (United States) | ABN (Australia) | |--------|--------------------|-----------------------| | Full Name | Employer Identification Number | Australian Business Number | | Issuing Authority | IRS (Internal Revenue Service) | Australian Business Register (ABR) | | Format | XX-XXXXXXX (9 digits) | 11 digits (e.g., 51 824 753 556) | | Purpose | US federal tax identification | business identification and GST registration | | Cost | Free | Varies | | Validity | United States only | Australia only | | Required for | US tax filing, banking, payroll | Australia tax compliance | | Application | Form SS-4 to IRS | Australia tax authority |
The Core Difference
An EIN identifies your business to the US government. A ABN identifies your business to the Australia government. If you operate in both countries, you need both numbers. One does not replace the other.
For Australia Entrepreneurs
How Australia Entrepreneurs Get a US EIN
Australia entrepreneurs who form a US LLC or corporation need a US EIN. The IRS online application requires an SSN, which Australia residents do not have. The solution is to submit Form SS-4 by fax.
Form Your US Entity
Complete Form SS-4
Submit by Fax
Receive Your EIN
Your existing ABN has no bearing on your US EIN application. The IRS does not ask for or verify foreign tax IDs. Your passport is sufficient identification.
For the Australia-specific EIN guide, see EIN for Australian entrepreneurs.
For more details, see our guide on EIN for non-US residents or how to get an EIN without an SSN.
Both Numbers
Do You Need Both Numbers?
You need an EIN if:
- You formed a US LLC or corporation
- You sell on US platforms (Amazon.com, Shopify US store)
- You need a US business bank account
- You hire US-based employees or contractors
- You file US tax returns
You need a ABN if:
- You operate a business in Australia
- You have tax obligations in Australia
- You employ workers in Australia
- You sell goods or services in Australia
You need both if:
- You operate businesses in both the US and Australia
- You are a Australia resident with a US LLC
- You earn income in both jurisdictions
Most Australia entrepreneurs expanding to the US already have a ABN. They add an EIN when they form their US business entity. The two numbers coexist without conflict.
Summary
Summary: EIN vs ABN
| Question | Answer | |----------|--------| | Are they the same? | No. Different countries, different authorities | | Can one replace the other? | No. Each is valid only in its own country | | Do I need both? | Only if you operate in both countries | | Which do I get first? | Whichever country you start your business in | | Cost of EIN? | Free (IRS) or $49 (ein.so for non-residents) |
For more comparisons, see EIN vs ITIN, EIN vs SSN, or EIN vs Tax ID.
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Frequently Asked Questions
Is an EIN the same as a ABN?
No. An EIN is a US federal tax ID from the IRS. A ABN is a business identification and GST registration from Australian Business Register (ABR) in Australia. They are issued by different authorities in different countries for different purposes.
Do I need both an EIN and a ABN?
Only if you operate businesses in both the United States and Australia. Your EIN identifies your US business for IRS tax purposes. Your ABN identifies your Australia business for local tax purposes. Each number is valid only in its own jurisdiction.
Can I use my ABN instead of an EIN in the US?
No. The IRS does not accept foreign tax identification numbers for US tax reporting. If you operate a US business entity (LLC, corporation), you must obtain a separate EIN from the IRS regardless of whether you have a ABN in Australia.
How do Australia entrepreneurs get a US EIN?
Australia entrepreneurs can get a US EIN by submitting Form SS-4 to the IRS by fax. No SSN is required. Your Australia passport number serves as your identification. ein.so handles the entire process for $49 (Standard) or $97 (Express).
What format is a ABN?
A ABN uses a 11 digits (e.g., 51 824 753 556) format. An EIN uses the XX-XXXXXXX format (9 digits with a hyphen after the second digit). The formats are different and not interchangeable.
Is an EIN valid in Australia?
No. An EIN is valid only for US federal tax purposes. It has no legal standing in Australia. Similarly, a ABN has no legal standing in the United States. Each country issues its own tax identification numbers.
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