Comparison Guide
EIN vs VAT Number Compared
Understand the difference between a US EIN and a EU/UK/170+ countries VAT Number. Both are tax identification numbers, but they serve different countries and purposes.
EU/UK/170+ countries entrepreneurs expanding into the US market frequently encounter both EINs and VAT Numbers. 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 EU/UK/170+ countries 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 VAT Number is issued by national tax authorities (HMRC, EU member states) for EU/UK/170+ countries 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
VAT Number
What Is a VAT Number?
A VAT Number (Value Added Tax Identification Number) is a varies (8-15 characters)-digit identification number issued by national tax authorities (HMRC, EU member states) in EU/UK/170+ countries. It uses the format Country code + 8-12 digits (e.g., GB123456789). The VAT Number serves as the primary consumption tax registration and collection in EU/UK/170+ countries.
VAT (Value Added Tax) is a consumption tax applied at each stage of production and distribution. Over 170 countries use VAT systems. The European Union, United Kingdom, Australia (GST), Canada (GST/HST), and India (GST) all operate VAT-style tax systems. Each country issues its own VAT registration number. In the EU, VAT numbers follow the format of the country code followed by 8-12 digits. In the UK, VAT numbers start with GB followed by 9 digits. The US does not have a VAT system. The US uses sales tax at the state and local level instead.
Key VAT Number Facts
- Issued by: national tax authorities (HMRC, EU member states)
- Format: Country code + 8-12 digits (e.g., GB123456789)
- Country: EU/UK/170+ countries
- Purpose: consumption tax registration and collection
Comparison
EIN vs VAT Number: Side-by-Side
| Factor | EIN (United States) | VAT Number (EU/UK/170+ countries) | |--------|--------------------|-----------------------| | Full Name | Employer Identification Number | Value Added Tax Identification Number | | Issuing Authority | IRS (Internal Revenue Service) | national tax authorities (HMRC, EU member states) | | Format | XX-XXXXXXX (9 digits) | Country code + 8-12 digits (e.g., GB123456789) | | Purpose | US federal tax identification | consumption tax registration and collection | | Cost | Free | Varies | | Validity | United States only | EU/UK/170+ countries only | | Required for | US tax filing, banking, payroll | EU/UK/170+ countries tax compliance | | Application | Form SS-4 to IRS | EU/UK/170+ countries tax authority |
The Core Difference
An EIN identifies your business to the US government. A VAT Number identifies your business to the EU/UK/170+ countries government. If you operate in both countries, you need both numbers. One does not replace the other.
For EU/UK/170+ countries Entrepreneurs
How EU/UK/170+ countries Entrepreneurs Get a US EIN
EU/UK/170+ countries entrepreneurs who form a US LLC or corporation need a US EIN. The IRS online application requires an SSN, which EU/UK/170+ countries 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 VAT Number 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 related comparisons, see EIN vs GST or EIN vs ABN.
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 VAT Number if:
- You operate a business in EU/UK/170+ countries
- You have tax obligations in EU/UK/170+ countries
- You employ workers in EU/UK/170+ countries
- You sell goods or services in EU/UK/170+ countries
You need both if:
- You operate businesses in both the US and EU/UK/170+ countries
- You are a EU/UK/170+ countries resident with a US LLC
- You earn income in both jurisdictions
Most EU/UK/170+ countries entrepreneurs expanding to the US already have a VAT Number. They add an EIN when they form their US business entity. The two numbers coexist without conflict.
Summary
Summary: EIN vs VAT Number
| 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 VAT Number?
No. An EIN is a US federal tax ID from the IRS. A VAT Number is a consumption tax registration and collection from national tax authorities (HMRC, EU member states) in EU/UK/170+ countries. They are issued by different authorities in different countries for different purposes.
Do I need both an EIN and a VAT Number?
Only if you operate businesses in both the United States and EU/UK/170+ countries. Your EIN identifies your US business for IRS tax purposes. Your VAT Number identifies your EU/UK/170+ countries business for local tax purposes. Each number is valid only in its own jurisdiction.
Can I use my VAT Number 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 VAT Number in EU/UK/170+ countries.
How do EU/UK/170+ countries entrepreneurs get a US EIN?
EU/UK/170+ countries entrepreneurs can get a US EIN by submitting Form SS-4 to the IRS by fax. No SSN is required. Your EU/UK/170+ countries passport number serves as your identification. ein.so handles the entire process for $49 (Standard) or $97 (Express).
What format is a VAT Number?
A VAT Number uses a Country code + 8-12 digits (e.g., GB123456789) 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 EU/UK/170+ countries?
No. An EIN is valid only for US federal tax purposes. It has no legal standing in EU/UK/170+ countries. Similarly, a VAT Number has no legal standing in the United States. Each country issues its own tax identification numbers.
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