A VAT number is a unique identifier used in many countries for tracking VAT payments and collections. It's crucial for businesses involved in international trade as it allows for taxation on goods and services at each stage of the supply chain. The registration process varies across countries, but generally involves applying with the relevant tax authority. In Europe, for instance, you can check the validity of a European VAT number using services like
VAT number check. It's essential for businesses to obtain a VAT number if they meet certain turnover thresholds in different countries. Failure to comply with VAT regulations can lead to penalties and legal consequences.