Tax ID Guide
VAT Identification Number Guide
A VAT identification number is a consumption-tax registration used in the EU, UK, and 170+ countries. The US has no VAT — US businesses use an EIN. ein.so files Form SS-4 for non-residents from $49.
A VAT identification number is a consumption-tax registration that businesses use to charge and reclaim Value Added Tax in 170+ countries. The United States has no VAT — US businesses use an EIN instead. The EU, UK, India (GST), Australia (GST), and Canada (GST/HST) all run VAT-style systems. To operate a US entity, you need an EIN, not a VAT number. ein.so files IRS Form SS-4 for non-residents and delivers the EIN by email. Standard costs $49 (4-7 business days). Express costs $97 (2-3 business days).
A VAT number and a US EIN solve different problems in different tax systems. VAT is a multi-stage consumption tax collected at each step of the supply chain, with businesses reclaiming the VAT they pay on inputs. The United States never adopted VAT. It taxes business income federally through the IRS and taxes consumption at the point of sale through state sales tax. This page explains what a VAT identification number is, why the US uses an EIN instead, and exactly how non-residents from VAT countries get a US EIN with Form SS-4.
| Factor | VAT System (EU, UK, 170+) | United States |
|---|---|---|
| Tax type | Value Added Tax (consumption) | State sales tax + federal income tax |
| Business ID | VAT number (country code + digits) | EIN (XX-XXXXXXX) |
| Issuing authority | National tax authority | IRS (federal) |
| Cost to register | Usually free | EIN is $0 from the IRS |
| Collected at | Every stage of supply chain | Final retail sale only |
| Applies nationally | Yes (single national VAT) | No (each state sets its own rate) |
What Is VAT
What Is a VAT Identification Number?
A VAT identification number is a unique code that a national tax authority assigns to a business so it can charge, collect, and reclaim Value Added Tax. The number proves the business is registered for VAT. It appears on invoices, customs forms, and tax returns across 170+ countries.
VAT is a consumption tax added at each stage of production and distribution. A registered business charges VAT on its sales (output VAT) and reclaims VAT on its purchases (input VAT). It remits the difference to the tax authority. The end consumer bears the final cost. This multi-stage design separates VAT from the single-stage US sales tax.
| Detail | Information |
|---|---|
| Full name | Value Added Tax Identification Number |
| Used in | 170+ countries (EU, UK, India, Australia, Canada) |
| Purpose | Charge, collect, and reclaim consumption tax |
| Format | Country code + 8-12 characters (varies) |
| US equivalent | None — US uses EIN + state sales tax |
| Cost | Usually free to register |
VAT Number Formats by Country
| Country | Format | Example |
|---|---|---|
| United Kingdom | GB + 9 digits | GB123456789 |
| Germany | DE + 9 digits | DE123456789 |
| France | FR + 11 chars | FR12345678901 |
| India (GST) | 15 characters | 22AAAAA0000A1Z5 |
| Australia (ABN) | 11 digits | 51 824 753 556 |
| Canada (GST/HST) | 9 digits + RT | 123456789RT0001 |
A foreign VAT number has zero standing in the United States. US banks, payment processors, and the IRS do not recognize it. For US operations you need a US EIN. See EIN for non-residents and what an EIN is.
US vs VAT
Why Does the US Use an EIN Instead of a VAT Number?
The US uses an EIN instead of a VAT number because the United States never adopted a federal Value Added Tax. The IRS identifies businesses with a 9-digit EIN for income tax, payroll, banking, and reporting. Consumption is taxed by states through sales tax, not by a national VAT.
The US tax structure splits across two levels. At the federal level, the IRS taxes business income and payroll, and it identifies every business by its EIN. At the state level, 45 states plus Washington, D.C. charge sales tax on final retail sales, with rates set independently by each state. There is no single national consumption tax and therefore no national VAT number.
Federal Identification: The EIN
State Sales Tax, Not VAT
No Input Tax Reclaim
One ID, Many Uses
If you come from a VAT country and form a US business, you keep your home VAT number for local sales and add a US EIN for US operations. The two never overlap.
Use Cases
Who Needs a US EIN Instead of a VAT Number?
Anyone operating a US business entity needs a US EIN instead of a VAT number, including foreign founders, e-commerce sellers, freelancers, and SaaS companies. A US LLC cannot open a bank account, accept US card payments, or file US taxes without an EIN. A VAT number cannot perform any of these functions in the US.
Entrepreneurs from VAT countries form US LLCs to reach US customers, payment rails, and capital. Each of these use cases requires an EIN, never a VAT number.
E-commerce and Amazon Sellers
SaaS and Tech Founders
Freelancers and Consultants
Digital Product and Content Creators
Across all four cases, the EIN does the US work and the VAT number does the home-country work. They are complements, not substitutes. Learn the full path in how to get an EIN.
Step-by-Step
How Do Non-Residents Get a US EIN Instead of a VAT Number?
Non-residents get a US EIN by submitting IRS Form SS-4 by fax to 855-215-1627, using a passport number on Line 7b instead of an SSN. The IRS online tool requires an SSN, so the fax method is the path for non-residents. The IRS issues most correctly filed EINs in 4-7 business days.
Form Your US LLC
Gather Your Documents
Complete Form SS-4
Fax to the IRS and Receive Your EIN
SS-4 Field Guide for Non-Residents
| SS-4 Field | Non-Resident Entry |
|---|---|
| Line 1 (Legal name) | Your US LLC name |
| Line 4 (Mailing address) | Your home (foreign) address |
| Line 7a (Responsible party) | Your full name as on your passport |
| Line 7b (SSN/ITIN/EIN) | Your passport number |
| Line 10 (Reason) | Started new business |
| Line 16 (Principal activity) | E.g., "e-commerce," "software," "consulting" |
The most common rejection cause is foreign address formatting. The IRS silently rejects malformed international addresses. ein.so reformats your address to an IRS-accepted style. Review EIN without an SSN and EIN processing time for full detail.
Cost Comparison
How Much Does a US EIN Cost vs VAT Registration?
A US EIN costs $0 directly from the IRS, the same as most VAT registrations, which are usually free. ein.so charges $49 (Standard, 4-7 business days) or $97 (Express, 2-3 business days) to prepare and fax Form SS-4 so non-residents avoid rejections and international phone calls. The IRS never charges a fee.
The IRS fee for an EIN is zero. You pay only for the service that prepares the SS-4 correctly and faxes it on your behalf, which matters because the online tool blocks applicants without an SSN. The table below compares the two systems and the ein.so service tiers.
| Item | VAT Registration | US EIN (DIY) | US EIN (ein.so Standard) | US EIN (ein.so Express) |
|---|---|---|---|---|
| Government fee | Usually free | $0 (IRS) | $0 (IRS) | $0 (IRS) |
| Service fee | Varies / often none | $0 | $49 | $97 |
| Processing time | Varies by country | 4-7 business days | 4-7 business days | 2-3 business days |
| Needs SSN | No | Online tool needs SSN | No | No |
| Submission method | National portal | Fax 855-215-1627 | Fax (handled for you) | Fax (priority) |
| Rejection handling | Self-managed | You manage | ein.so manages | ein.so manages |
ein.so also offers a separate ITIN service at $197 (Standard) and $297 (Express) for non-residents who need a personal taxpayer number. See full pricing on EIN cost and start on the apply page.
Tax Compliance
What Tax Filings Replace VAT Returns for a US LLC?
A foreign-owned single-member US LLC files Form 5472 plus a pro-forma Form 1120 each year, not VAT returns. The penalty for late or missing Form 5472 is $25,000. These are US information filings tied to your EIN and have no connection to your home-country VAT obligations.
A US LLC owned by a foreign person does not file VAT returns because the US has no VAT. Instead, it has US federal filing duties driven by the EIN. Your home-country VAT returns stay entirely separate and continue under local rules. Confirm both sets of obligations with a US CPA and a local tax adviser, since ein.so files the EIN and does not provide tax advice.
Form 5472 + Pro-Forma 1120
BOI Report to FinCEN
State Sales Tax, If Nexus Applies
Home-Country VAT Stays Separate
Your EIN is the starting point for US compliance. ein.so handles the EIN application only and does not give tax advice. See EIN for non-residents and EIN without SSN for the full process.
Common Errors
What Mistakes Do VAT-Country Founders Make Getting a US EIN?
VAT-country founders most often try to use a foreign VAT number where a US EIN is required, then hit rejections from banks, processors, and the IRS. The fix is to apply for a US EIN with Form SS-4 using a passport number on Line 7b. ein.so prevents the four errors below.
Avoid these four mistakes
- Submitting a foreign VAT number to a US bank or to Stripe instead of a US EIN. Only an EIN is accepted.
- Trying the IRS online EIN tool without an SSN. The tool blocks non-residents; the fax method to 855-215-1627 is required.
- Entering a malformed foreign address on Line 4. The IRS silently rejects bad international formatting.
- Leaving Line 7b blank. Non-residents must enter a passport number; a blank line triggers rejection.
What to do instead
- Apply for a US EIN with Form SS-4 and your passport number on Line 7b.
- Use the fax method, not the online tool, because you have no SSN.
- Format your foreign address to an IRS-accepted style before submitting.
- Keep your home VAT registration for local sales and use the EIN for US operations.
ein.so reviews every field, reformats your address, and faxes the SS-4 for you. See how to get an EIN and EIN for a bank account to put the EIN to work after approval.
Next Steps
After You Get Your US EIN From a VAT Country
- Open a US bank account — Mercury, Relay, and Wise accept non-resident LLC owners with an EIN and passport
- File your BOI report — required for most LLCs, free at fincen.gov
- File Form 5472 — annually for foreign-owned LLCs ($25,000 penalty for non-filing)
- Learn the process — read how to get an EIN and the SS-4 form guide
- Confirm timing and cost — see EIN processing time and EIN cost
Related guides: EIN for non-residents | EIN without SSN | Tax ID types | What is an EIN
Frequently Asked Questions
Does the United States have a VAT identification number?
No. The United States has no federal VAT and issues no VAT identification numbers. US businesses register for an Employer Identification Number (EIN), a 9-digit IRS tax ID in XX-XXXXXXX format. Sales tax is collected at the state level, not federally. If you run a US entity, you need an EIN, not a VAT number.
Is a VAT number the same as a US EIN?
No. A VAT number is a consumption-tax registration used to charge and reclaim VAT in 170+ countries. A US EIN is a federal tax identifier the IRS assigns to businesses for filing returns, banking, and hiring. They serve different tax systems. A foreign VAT number has no standing in the United States.
Can I use my foreign VAT number to open a US bank account?
No. US banks like Mercury and Relay require a US EIN, not a foreign VAT number, to open a business account. The EIN links your LLC to the US tax system. ein.so files Form SS-4 and delivers your EIN by email in 4-7 business days for $49 (Standard) or 2-3 days for $97 (Express).
Do non-residents need an SSN to get a US EIN?
No. Non-residents do not need an SSN or ITIN to get a US EIN. You enter your passport number on Form SS-4 Line 7b. The IRS online EIN tool requires an SSN, so non-residents use the fax method. ein.so faxes your SS-4 to the IRS at 855-215-1627 and returns your EIN letter (CP 575).
What is the US equivalent of a VAT registration?
The closest US equivalent is the EIN combined with state sales-tax registration. The EIN identifies your business federally; a state sales-tax permit lets you collect sales tax where you have nexus. Unlike VAT, US sales tax applies only at the final sale and is administered by individual states, not a single national authority.
How much does a US EIN cost compared to VAT registration?
The IRS charges $0 for an EIN. VAT registration fees vary by country and are usually free to register. ein.so charges $49 (Standard, 4-7 business days) or $97 (Express, 2-3 business days) to prepare and fax your Form SS-4 so non-residents avoid IRS rejections and international phone calls. The IRS itself never charges a fee.
Do I charge VAT or sales tax when selling to US customers?
You do not charge VAT on US sales because the US has no VAT. You may need to collect US state sales tax once you cross an economic nexus threshold in a state. Thresholds and rates vary by state. Confirm your sales-tax obligations with a US CPA, since ein.so does not provide tax advice.
Does a US LLC owned by a foreign person file VAT returns?
No. A US LLC files US federal returns, not VAT returns. A foreign-owned single-member US LLC files Form 5472 plus a pro-forma Form 1120 each year, with a $25,000 penalty for late or missing filings. Your home-country VAT obligations stay separate. Confirm both with a CPA and a local tax adviser.
Can I have both a VAT number and a US EIN?
Yes. Entrepreneurs who sell in a VAT country and operate a US entity hold both. The VAT number covers local consumption tax; the US EIN covers US federal tax, banking, and payment processing. They are separate registrations from separate authorities and do not replace one another. ein.so handles the EIN side for $49.
How long does it take to get a US EIN as a non-resident?
Through ein.so, Standard processing takes 4-7 business days for $49 and Express takes 2-3 business days for $97. The DIY fax method to 855-215-1627 takes 4-7 business days when the SS-4 is error-free. Address-formatting and Line 7b errors are the most common cause of IRS rejection and silent delays.
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