VAT / Tax Identification Numbers

A Value Added Tax (VAT) Identification Number is a unique identifier assigned to businesses registered for VAT within the European Union. This number is essential for:

  • Cross-border B2B transactions: Facilitates the application of the reverse charge mechanism, allowing the buyer to account for VAT in their own country.

  • VAT compliance: Enables businesses to reclaim VAT on eligible purchases and ensures proper reporting to tax authorities.

  • Verification purposes: Confirms the VAT registration status of trading partners.

Each EU Member State issues VAT numbers in a specific format, typically starting with a two-letter country code followed by a series of digits or characters. For example:

  • Germany: DE123456789

  • France: FR12345678901

  • Italy: IT12345678901

Businesses can verify the validity of a VAT number through the EU’s official VIES (VAT Information Exchange System) portal: https://ec.europa.eu/taxation_customs/vies/

Tax Identification Number (Tax ID)

A Tax Identification Number (Tax ID) is a broader identifier used for general tax purposes, such as income tax, corporate tax, and other national tax obligations. Unlike the VAT ID, which is specific to VAT transactions, the Tax ID applies to a wider range of tax-related activities.

DIDWW VAT and Tax ID Policy

DIDWW applies VAT to customers based on their VAT registration status and location:

  • EU Businesses: If a valid VAT ID is provided and the business is located outside of Ireland, VAT is not charged under the reverse charge mechanism.

  • EU Individuals or Businesses without a valid VAT ID: VAT is applied at the rate applicable in the customer’s country of residence.

  • Non-EU Customers: VAT is not applied.

Customers with a Business account can manage their VAT ID and Tax ID information by navigating to Account Settings, then selecting the Account Details page in their DIDWW account.

If assistance is required, please contact the DIDWW Billing Department at billing@didww.com .

Note

  • Ensure that your VAT ID is valid and corresponds to your business’s registered address.

  • Regularly verify the VAT IDs of your EU trading partners to maintain compliance.

  • For more information on VAT regulations and requirements, refer to the European Commission’s official VAT portal: https://taxation-customs.ec.europa.eu/taxation/vat_en