Tax

What is VAT and how to add it to your invoices

A plain-English guide to VAT: what it is, whether you need to charge it, and where to find your VAT number on existing documents.

5 min read · 17 May 2026
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VAT (Value Added Tax) is a consumption tax that businesses collect on behalf of the government. If you’re VAT-registered, you add VAT on top of your prices, collect it from your clients, and pay it to your tax authority — usually quarterly.

Do you need to charge VAT?

Not automatically. In most countries you only become liable to charge VAT once your annual turnover crosses a registration threshold. Below that threshold you can trade without VAT entirely.

Thresholds vary significantly by country — for example, the UK threshold is £90,000, Germany’s is €25,000, Greece’s is €10,000, and Ireland’s is €42,500 for services. If you’re close to your country’s threshold or already over it, check with a local accountant or your national tax authority’s website.

VAT number vs. your other tax numbers

Your VAT number is not the same as your general tax identification number, and confusing them is extremely common. Most countries assign you two or three separate tax IDs for different purposes:

TypePurposeRecognise it by
VAT numberCharged on sales; EU cross-border tradeAlways starts with a two-letter country code (DE, EL, GB…)
Local / income tax IDUsed for domestic tax returns and correspondence with your local tax officeFormat varies by country and state
Personal tax IDPermanent lifetime number assigned to every individualUsually 9–11 digits, no country prefix

A practical rule: if you see a number with a two-letter country prefix followed by digits, that is a VAT number. If the number you have has no country prefix, or doesn’t match your country’s VAT format, it is almost certainly a different type of tax ID — and it won’t work in a field asking specifically for a VAT number.

If a field is marked “optional” (for example in Apple Developer registration or other platforms), you can safely leave it blank if you are not VAT-registered. The platform will charge you the local rate and issue a standard invoice.

What a VAT number looks like

VAT numbers follow a country-specific format but almost always start with a two-letter country code:

CountryFormatExample
GermanyDE + 9 digitsDE123456789
GreeceEL + 9 digitsEL123456789
United KingdomGB + 9 digitsGB123456789
FranceFR + 11 charactersFR12345678901
NetherlandsNL + 12 charactersNL123456789B01

The country code is only needed when trading across EU borders (intra-community transactions). On domestic invoices, the number alone is often sufficient.

Where to find your VAT number

If you’re already registered, your VAT number appears in several places — you don’t need to log into a portal to find it.

Your registration letter is the most reliable source. When you registered for VAT, your tax authority sent a confirmation letter or email. That document contains your number. In Germany this comes from the Bundeszentralamt für Steuern (BZSt); in Greece from AADE via the myAADE portal; in the UK from HMRC.

Previous invoices you’ve issued almost certainly have it printed at the bottom or in the header — wherever you put your business details.

Correspondence from your tax authority — any official letter, tax assessment, or reminder will reference your VAT number somewhere in the header block.

Online portals: Most countries let you view your registered tax details online. Germany: bzst.de. Greece: myaade.gr. UK: gov.uk/log-in-register-hmrc-online-services.

If you genuinely can’t find it, call your tax authority’s helpline and give your name and address — they can look it up for you.

You might not have one yet

Being registered for income tax doesn’t automatically give you a VAT number. In most countries, VAT registration is a separate step — and below the threshold, you won’t have one at all. That is completely normal.

If you’ve recently started freelancing or running a small business and have only received a general or personal tax ID, you almost certainly are not yet VAT-registered. You can apply for VAT registration through your national tax authority once your turnover approaches or crosses the threshold — or earlier if it benefits you.

Invoicing EU clients as a VAT-registered business

If you’re VAT-registered and invoice a business in another EU country, you generally don’t charge VAT — the responsibility shifts to the buyer under the reverse charge mechanism. Your invoice should show your VAT number, the client’s VAT number, a zero VAT line, and the note “Reverse charge — VAT to be accounted for by the recipient.” This only applies to B2B transactions; invoicing EU consumers (B2C) follows different rules by country.

Adding VAT to invoices in Billino

In Billino, add your VAT number and the applicable rate to your sender profile. From that point, every invoice will show the net amount, the VAT amount, and the gross total as separate lines — which is a legal requirement in most jurisdictions once you’re VAT-registered.

If you’re not VAT-registered yet, leave the VAT fields blank. Billino will produce a clean invoice without any tax line, which is exactly what you need.

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