Comparison Guide
EIN vs VAT Number Compared
Understand the difference between a US EIN and a VAT number used across the EU, UK, and 170+ countries. Both are tax identification numbers, but they serve different jurisdictions and different purposes.
An EIN is a 9-digit US federal tax ID issued by the IRS. A VAT number is a country-code-plus-digits consumption tax registration issued by national authorities across the EU, UK, and 170+ countries. They serve different purposes in different jurisdictions. US entities need an EIN. VAT-country businesses need a VAT number. If you operate in both, you need both. The IRS charges $0 for an EIN; ein.so files Form SS-4 for non-residents from $49.
Entrepreneurs expanding between the United States and VAT countries meet two tax IDs that look similar but work differently. An EIN and a VAT number both identify a business to a tax authority. That is where the similarity ends. The EIN is an income tax identifier. The VAT number is a consumption tax registration. This guide compares the two side by side, explains who needs each, and shows how non-residents obtain a US EIN without an SSN.
The core distinction is jurisdiction and tax type. The US Internal Revenue Service (IRS) issues the EIN for federal income tax identification. National tax authorities issue VAT numbers for value added tax collection. Neither number is valid in the other's jurisdiction.
| Factor | EIN (United States) | VAT Number (EU / UK / 170+ countries) |
|---|---|---|
| Full name | Employer Identification Number | Value Added Tax Identification Number |
| Issuing authority | IRS | National tax authorities (HMRC, EU member states) |
| Format | XX-XXXXXXX (9 digits) | Country code + 8 to 12 characters |
| Tax type | Federal income tax identification | Consumption tax registration |
| Government cost | $0 | $0 in most countries |
| Validity | United States only | Issuing VAT country only |
| Application | Form SS-4 to the IRS | Local VAT registration |
Definition
What Is an EIN?
An EIN (Employer Identification Number) is a 9-digit federal tax ID issued by the US Internal Revenue Service to identify a business entity for income tax purposes. The format is XX-XXXXXXX, for example 12-3456789. The IRS issues the EIN once and assigns it to the entity permanently.
Every US business entity uses an EIN to file federal taxes, open a US business bank account, hire employees, and complete platform tax interviews. The EIN identifies the business, not the owner. A French, Indian, or UK resident can own a US LLC and hold its EIN.
The IRS charges $0 for an EIN. Read the full breakdown in our EIN cost guide and the complete what is an EIN explainer.
Key EIN Facts
- Issued by: Internal Revenue Service (IRS)
- Format: XX-XXXXXXX (9 digits)
- Government cost: $0 from the IRS
- Purpose: US federal income tax identification
- Application: Form SS-4 by online, fax, phone, or mail
- Processing: Instant online (SSN holders) or 4-7 business days by fax
VAT Number
What Is a VAT Number?
A VAT number is a consumption tax registration issued by a national tax authority so a business can charge, collect, and remit value added tax. It uses a country code followed by 8 to 12 characters, such as GB123456789 in the United Kingdom. Over 170 countries operate VAT or VAT-style systems.
VAT (Value Added Tax) applies at each stage of production and distribution. The seller collects VAT from the buyer and remits it to the tax authority, claiming credit for VAT already paid on inputs. The European Union, United Kingdom, Australia (GST), Canada (GST/HST), and India (GST) all run VAT-style regimes.
The United States has no VAT system. US businesses collect state and local sales tax instead. Sales tax rates vary by state and city. A US business that sells into the EU or UK may still owe VAT there under destination rules; confirm thresholds with a local tax advisor.
Key VAT Number Facts
- Issued by: National tax authorities (HMRC, EU member states, and others)
- Format: Country code + 8 to 12 characters (e.g., GB123456789)
- Used in: EU, UK, and 170+ VAT or GST countries
- Purpose: Consumption tax registration and collection
- US equivalent: None; the US uses state sales tax
Comparison
How Does an EIN Compare to a VAT Number?
An EIN compares to a VAT number the way an income tax ID compares to a consumption tax registration: both identify a business to a government, but they sit in different tax systems and different countries. The table below sets out every practical difference.
| Factor | EIN (United States) | VAT Number (EU / UK / 170+) |
|---|---|---|
| Full name | Employer Identification Number | Value Added Tax Identification Number |
| Issuing authority | IRS | National tax authorities |
| Format | XX-XXXXXXX (9 digits) | Country code + 8 to 12 characters |
| Tax type | Federal income tax ID | Consumption tax registration |
| Who needs it | US LLCs, corporations, employers | Businesses with VAT-taxable supplies |
| Government cost | $0 | $0 in most countries |
| Validity | United States only | Issuing VAT country only |
| Used for | US tax filing, banking, payroll, platforms | Charging and remitting VAT |
| Identifies | The business entity | The business entity |
| Application | Form SS-4 to the IRS | Local VAT registration portal |
| Permanence | Permanent for the entity's life | Active while registered; can deregister |
The Core Difference
An EIN identifies your business to the US federal government for income tax. A VAT number registers your business with a national authority to collect consumption tax. If you operate taxable activity in both the US and a VAT country, you need both numbers. One never replaces the other.
For Non-Residents
How Do Non-Residents Get a US EIN?
Non-residents get a US EIN by filing IRS Form SS-4 by fax to 855-215-1627, using a passport number on Line 7b in place of an SSN. The IRS online tool requires an SSN, so the fax method is the path for applicants without one. The IRS issues most correctly filed EINs within 4-7 business days.
Form Your US Entity
Complete Form SS-4
Submit by Fax
Receive Your EIN
Your VAT number plays no role in the EIN application. The IRS does not ask for or verify foreign tax IDs. Your passport is sufficient identification on Line 7b. See the full SS-4 form guide, the EIN without SSN walkthrough, and how to get an EIN end to end.
For deeper country-by-country detail, read EIN for non-residents.
Both Numbers
Do You Need Both Numbers?
You need both an EIN and a VAT number only when you have taxable activity in both the United States and a VAT country. Most cross-border founders already hold one number and add the other when they expand. The lists below show when each applies.
You Need an EIN If
You Need a VAT Number If
You Need Both If
Order of Operations
The two registrations coexist without conflict. They live in separate tax systems and are managed by separate authorities. Confirm your VAT obligations with a local tax advisor and your US filing duties with a US CPA.
US Filing Duties
What US Filings Follow an EIN for Non-Residents?
A foreign-owned single-member US LLC must file IRS Form 5472 with a pro-forma Form 1120 each year after getting its EIN. The penalty for not filing is $25,000. This is an information return that reports transactions between the LLC and its foreign owner, not necessarily a tax bill.
Form 5472 + Pro-Forma 1120
BOI Report to FinCEN
State Annual Reports
No US VAT
ein.so files your EIN and does not provide tax advice. Work with a US CPA familiar with non-resident matters and a tax advisor in your home country. Your EIN is the starting point for US compliance, not the end of it.
Related IDs
How Does the EIN Compare to Other Tax IDs?
The EIN is the US business income tax ID, while the ITIN, SSN, and VAT number each cover different needs. Non-residents who lack an SSN often confuse these numbers, so the table below clarifies who issues each and what it does.
| Tax ID | Issuer | Who Holds It | Primary Use |
|---|---|---|---|
| EIN | IRS | US business entities | Federal income tax ID for businesses |
| ITIN | IRS | Individuals without an SSN | Personal US tax filing |
| SSN | SSA | US citizens and residents | Personal ID and tax filing |
| VAT number | National authorities | Businesses in VAT countries | Consumption tax collection |
A non-resident forming a US LLC needs an EIN, not a VAT number, to operate that LLC. If you also need to file a personal US return, you may need an ITIN. ein.so offers an ITIN service for $197 Standard or $297 Express alongside its $49 EIN filing. The EIN covers the business; the ITIN covers the individual.
For more side-by-side guides, see EIN vs ITIN, EIN vs SSN, and EIN vs Tax ID.
Next Steps
What Should You Do Next?
If you operate or plan a US entity, your next step is to get the EIN; if you sell in a VAT country, register for VAT there separately. The checklist below covers the US side that ein.so handles.
- Apply for your EIN — ein.so files Form SS-4 by fax for $49 Standard or $97 Express
- Open a US bank account — Mercury and Relay accept non-resident LLC owners
- File your BOI report — required for most US LLCs
- File Form 5472 — annually for foreign-owned LLCs ($25,000 penalty for non-filing)
- Check timing — review EIN processing time and EIN cost before you start
Related reading: EIN without SSN | EIN for non-residents | how to get an EIN | SS-4 form guide.
Frequently Asked Questions
Is an EIN the same as a VAT number?
No. An EIN is a 9-digit US federal tax ID issued by the IRS for income tax identification. A VAT number is a consumption tax registration issued by national tax authorities like HMRC in the UK or member-state tax offices in the EU. Different issuers, different countries, different purposes.
Do I need both an EIN and a VAT number?
You need both only if you operate taxable activity in both the United States and a VAT country. Your EIN identifies your US entity to the IRS. Your VAT number registers you for consumption tax in the EU, UK, or another VAT jurisdiction. Each number works only in its own country.
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 federal tax reporting. If you form a US LLC or corporation, you must obtain a separate EIN by filing Form SS-4, regardless of any VAT number you hold abroad. The two numbers are not interchangeable.
How do non-US entrepreneurs get a US EIN?
Non-US entrepreneurs file IRS Form SS-4 by fax to 855-215-1627. No SSN or ITIN is required. You enter your passport number on Line 7b as identification. The IRS online tool requires an SSN, so the fax route is the path. ein.so files it for $49 Standard or $97 Express.
What format is a VAT number?
A VAT number is a country code followed by digits, such as GB123456789 in the UK or FR plus 11 characters in France. An EIN uses the XX-XXXXXXX format: 9 digits with a hyphen after the second digit, like 12-3456789. The formats are structurally different and not interchangeable.
Is an EIN valid in the EU, UK, or other VAT countries?
No. An EIN is valid only for US federal tax purposes. It carries no legal standing in the EU, UK, or any VAT country. A VAT number likewise has no standing in the United States. Each tax authority issues and recognizes only its own identification numbers.
Does an EIN cost money like VAT registration?
The IRS charges $0 for an EIN. VAT registration is also free in most countries, though the compliance burden differs. ein.so charges $49 Standard (4-7 business days) or $97 Express (2-3 business days) to prepare and fax Form SS-4 for non-residents who cannot use the IRS online tool.
Does a US business charge VAT?
A US business does not charge VAT. The United States has no VAT system. US businesses collect state and local sales tax instead, which varies by state and city. If you sell into the EU or UK, you may still owe VAT there under destination rules. Confirm VAT thresholds with a local tax advisor.
Do I lose my EIN if I deregister for VAT?
No. Your EIN is permanent and unrelated to any VAT registration. The IRS assigns an EIN to your US entity for the life of that entity. Deregistering for VAT in the EU or UK has zero effect on your US EIN. The two registrations are managed by separate authorities.
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