Intra-community VAT Number: How Does It Work?

If you operate a company in France or within the European Union, an intra-community VAT number is a necessity. But what exactly is it, and how does it serve your business? Organilog is here to provide you with a comprehensive understanding of this vital number and guide you on how to correctly incorporate it into your accounting procedures.

Understanding the VAT Number

The intra-community VAT number is a unique tax identification assigned to businesses subject to VAT operating within the European Union. All companies engaging in commercial transactions with European partners must acquire this specific number.

What does the VAT number consist of?

This identification number follows a specific format, typically composed of two letters (such as “FR”) followed by two characters, which can be numbers or letters, and the company’s SIREN number, which comprises nine digits.

What is the intra-community VAT number used for? 

The primary purpose of this number is to distinguish each company operating within the EU member states, simplifying commercial relations between European companies. Additionally, this number streamlines your administrative procedures, making VAT declarations and requests for intra-community VAT reimbursements more straightforward.

For your business, possessing an intra-community VAT number signifies trust and security when purchasing goods and services from other EU companies. It enables you to verify the legitimacy of the company you are engaging with, reducing the risk of falling victim to fraud.

Validating a Company’s Intra-Community Number

Verifying the validity of a company’s intra-community number is remarkably straightforward. Refer to the European Commission’s database, the VAT Information Exchange System (VIES), which maintains a comprehensive list of companies registered within the European Union, along with their respective intra-community VAT numbers. Validity in this database assures you of your partner’s authenticity.

Obtaining an Intra-Community VAT Number

If your business is VAT-liable, this number is automatically assigned during the registration and declaration process. For businesses not subject to VAT, the allocation does not occur automatically. In such cases, the tax services generate the number, which you must request from the business formalities center (CFE). This application process incurs no cost for your company.

Compliance with Legal Obligations

Your intra-community VAT number must be prominently displayed on all your invoices. It should also appear on:

  • VAT declarations
  • Declarations of Exchange of Goods (DEB)
  • European Service Declarations (DES)

Facilitate Invoicing with Specialized Software

In France, all commercial transactions require an invoice. As previously mentioned, your company’s intra-community VAT number should be featured on all your accounting documents, whether they are standard, status, deposit, proforma, or other types.

Invoicing can be a time-consuming administrative task, especially when you rely on Excel or, even worse, paper documents. Fortunately, invoicing software streamlines this process, saving you time and money. With this software, you can:

  • Convert quotes into invoices with a single click.
  • Customize your documents to align with your company’s image.
  • Automate billing recurrence.
  • Implement automatic reminders for unpaid or overdue payments.
  • Enable electronic document signing.
  • Monitor turnover and cash flow.
  • Calculate tax-inclusive and exclusive amounts according to your VAT rate, and more.

Introducing Organilog: Your Ultimate Invoicing Assistant

Organilog is an all-encompassing software that streamlines business invoicing among a multitude of other functionalities. With its comprehensive modules, Organilog assists in planning, inventory and supplier management (ideal for businesses with EU-based suppliers), customer and contract management, after-sales service, business dashboard analytics, digital scoring, electronic signatures, and much more.

So, why hesitate? Consider requesting a free, personalized Organilog demo today, and elevate your business operations to a new level of efficiency and effectiveness.