Understanding the basic concept of VAT

The VAT no commonly designated as the VAT number is one of the most essential and integral components of EU VAT. It is a form of an accredited “identifier number” which is most commonly used across all of the EU states.

The VAT identification number comprises of the essential details regarding the whereabouts of the individual associated with the number. The number has been known to be used for a various set of reasons with legislative reasons being the top priority in all cases.

The VAT no however is not commonly available to the general public and is under the sole jurisdiction of the Government to provide the number to anyone seeking it. The number is however provided to civic authorities in case they request for it.

The VAT identification number is known to start with ISO-alpha 2 code with the country code following it. In case of Greece however, the usage of ISO 639-1 following the “language code” El is marked. The VAT identification numbers mostly are comprised of a unique sequence of alpha numeric digits which are unique to every individual. The uniqueness ensures that one sequential number is not used in multiple cases which can make tax evasion a relatively easier task to perform.

In many cases, various foreign companies have also been known to make the use of VAT number to mark their enterprises commonly associated with trade under the guidelines of EU. In this case the number however starts with EU and does not comprise of a country code.

 

https://www.vacue.us/vat-no

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