Everything You Need to Know About a VAT Identification Number
A VAT identification number is essential for doing business within the European Union (EU) single market. This unique number is used to identify taxpayers registered for Value Added Tax (VAT). Below, we provide all the important information on who needs it, how to obtain it, and why it is important.
What is a VAT Identification Number?
A VAT identification number is a unique number that allows the identification of taxpayers (both legal entities and individuals) registered for VAT. This number includes the personal identification number (OIB) with the prefix “HR” for Croatia.
Who Needs a VAT Identification Number?
A VAT identification number is required for:
- Croatian taxpayers conducting business within the EU (receiving or providing services, or acquiring or supplying goods).
- Foreign taxpayers delivering goods or services in Croatia or exceeding the distance selling threshold.
- Legal entities that are not standard taxpayers but are required to pay VAT on the acquisition of goods within the EU.
- Entities providing services in the EU where the recipient is liable for VAT.
- All other entities that choose to register for VAT, even if they have not exceeded the prescribed thresholds (e.g., the acquisition threshold of 77,000 HRK).
Why is a VAT Identification Number Important?
- Mandatory for doing business in the EU – without a valid VAT number, transactions within the EU are not possible.
- Information exchange via VIES – all registered VAT numbers are shared through the VAT Information Exchange System (VIES).
- Monthly tax obligations – VAT-registered entities must submit monthly Value Added Tax returns.
How to Apply for a VAT Identification Number?
You can apply for a VAT identification number in three ways:
- In person – at the competent tax officer in your local tax office.
- Online via the e-Tax system – using a Level 3 security credential.
- By mail – recommended, marked with “For VAT ID number assignment.”
The application includes:
- Registration for Value Added Tax (VAT);
- A questionnaire for VAT number assignment;
- Documentation for verifying the personal identification number (OIB).
Checking the Validity of a VAT Number
The validity of a VAT identification number can be checked through the VIES system on the European Commission’s website. This ensures that the number is correctly registered and allows for smooth business operations within the EU single market.
Differences Between a VAT Number and an EORI Number
Although their structures are similar, a VAT number is issued by the Tax Administration, while an EORI number (used in customs procedures) is issued by the Customs Administration. It is important to ensure that your VAT number is correctly registered and visible in the VIES system. Learn more about EORI numbers in our blog “What is an EORI Number and How to Obtain It”.
Is the Same VAT Number Used Across the Entire EU?
No, each VAT number is national and begins with the country prefix (e.g., HR for Croatia). Businesses operating in multiple EU countries must obtain a VAT number in each country where they supply goods or provide services.
A Key Number for Doing Business in Croatia and the EU
A VAT identification number is essential for doing business in Croatia and across the EU single market. Proper registration and possession of a valid VAT number enable smoother trade of goods and services within the EU and ensure compliance with tax regulations. For more information, it is best to contact the Tax Administration directly or check the VIES system.
