VAT Number Format

Why is the VAT number format check important

When you receive an invoice from your EU business partner, first of all check if it contains Value added tax number of the seller and purchaser.

While Tax number is being used for all taxes, probably most common is income tax. VAT number is used solely for Value added tax purposes. Tax number is domicile tax identification number. These two cannot be mixed together because they can differ. 

VAT number will be used in other filings connected with VAT reporting, for example VAT control statement.

Furthermore, if business partner does not state your VAT number on the invoice, the financial authorities would not accept such an invoice during a tax control. It would not be certain who is the buyer of the goods  and who should declare the tax.

How to check the VAT number

The correct EU VAT number format can be checked in the EU database of VAT numbers on the web pages of European Commission.

Why it is recommended to check the VAT number format

Because if the incorrect VAT number is mentioned in the VAT control statement, the checking software of the tax authorities will recognize an incorrectness and Czech Tax adminitration immediately sends an appeal to correct or clarify the issue. You can see official information about VAT control statement here.

More on VAT verification.

The Czech VAT number format

In the Czech Republic there are two possible formats.  The first is for legal entities and the other is for entrepreneurs. In both cases it always starts with “CZ”.

There are eight digits for legal entities after “CZ”. In case of entrepreneurs there are usually nine or 10 digits after “CZ”.

The Value added tax numbers is also used as an identification for payments made to the bank accounts of the tax administration. They are used in all communication with tax authorities and mentioned on VAT filings.