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U.S. EIN vs. VAT Number: Key Differences Explained

  • No VAT in the US: The United States operates Sales Tax at state and local levels, not a national VAT system, so businesses cannot obtain a VAT number domestically.

  • United States EIN: The EIN (Federal Tax ID) identifies businesses for federal tax purposes, hiring, banking, and reporting. It is not a VAT number but often serves as a “Tax ID” internationally.

  • Obtaining an EIN: Businesses apply directly through the IRS at no cost. Corporations, partnerships, and LLCs generally require an EIN, while sole proprietors may benefit for banking or international trade purposes.

  • Foreign VAT Obligations: US businesses selling or storing goods abroad may need VAT registration in foreign jurisdictions. The EIN often substitutes for a VAT number when requested by overseas partners.

Source: vatit.com



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