A common question from businesses expanding into or trading with the US is: “How do I get a VAT number in America?”
The straightforward answer is: You don’t.
The United States does not operate a national VAT system and therefore does not issue VAT numbers. Instead, businesses must navigate a complex framework of state and local Sales Tax, each with its own rules and registration requirements.
What does exist, however, is the United States EIN, a federal business identifier that often serves as the closest equivalent when international partners request a “VAT number”. For companies entering the US market, understanding how this fits into broader Sales Tax obligations is essential. Businesses looking to manage these obligations can explore our US Sales Tax solutions.
The reason you cannot obtain a VAT number in the US is structural:
Since there is no VAT number in the US, the United States EIN (Employer Identification Number) is what businesses use instead when asked for a tax identifier.
What is an EIN? The EIN – sometimes referred to as the Federal Employer Identification Number (FEIN) or Federal Tax ID – is a unique nine-digit number issued by the Internal Revenue Service (IRS).
Purpose: The United States EIN is used to identify a business entity for federal tax purposes, filing returns, hiring employees, and opening business bank accounts.
Not a VAT Number: Importantly, an EIN cannot be used as a VAT number. It will not work for VAT validation systems (such as VIES in the EU) and does not support VAT mechanisms like the reverse charge. However, in practice, providing a United States EIN often satisfies overseas suppliers or customers when they request a “Tax ID.”
Applying for a United States EIN is a straightforward process. Businesses can apply directly through the IRS website at no cost. Corporations, partnerships, and multi-member LLCs are generally required to obtain one, while sole proprietors may also benefit from having an EIN for banking or international trade purposes.
Even though the United States has no VAT system, American companies may still be required to obtain VAT numbers abroad. This happens when they engage in taxable activities in countries that operate VAT or GST systems, such as in the EU, UK, or Australia.
Common triggers include:
In these cases, the US company must register directly with the relevant tax authority or use simplified schemes like the EU One-Stop Shop (OSS). The VAT number issued will belong to that foreign country and must be used for VAT collection, reporting, and payment.
For businesses operating in or with the US:
While the United States does not issue VAT numbers, every business operating in the country or engaging in international trade must understand the role of the United States EIN. It is the key federal identifier for tax compliance at home and the number most often requested by foreign partners in place of a VAT number. For US companies expanding globally, however, VAT registration abroad may still be necessary.
Staying compliant across multiple tax systems is complex – but it doesn’t have to be overwhelming. If your business needs clarity on US tax identification or foreign VAT registration, our experts can guide you through every step.
Contact us today to ensure your United States EIN and international VAT obligations are fully compliant.
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