The term US VAT ID is searched by thousands of businesses and individuals every month — yet it refers to something that technically doesn't exist. The United States does not have a Value Added Tax, which means there is no official US VAT ID. However, there are several important tax identifiers that serve equivalent functions for US-based businesses. This article explains everything you need to know.

Understanding Why There Is No US VAT ID

VAT is a consumption tax collected at each stage of the supply chain, from raw materials to the final consumer. Countries like those in the EU, the UK, Australia, and Canada use this model. The US chose a different path: a combination of federal income taxes and state-level sales taxes. As a result, no US VAT ID exists at the federal level, and no single national tax number replaces it.

The Closest Equivalent to a US VAT ID

Depending on the context in which you need a tax identifier for the US, here are the relevant numbers:

EIN (Employer Identification Number):
The primary federal business tax ID in the US. Used for income tax filings, payroll, opening business bank accounts, and identifying a business in commercial transactions. This is the most direct substitute for what international parties may call a US VAT ID.

SSN (Social Security Number):
For sole proprietors without employees, the SSN may serve as their business tax identifier instead of an EIN.

Sales Tax Permit:
State-issued permit number for businesses collecting sales tax. There is one per state — businesses operating in multiple states may have several.

ITIN: 
For foreign individuals with US tax obligations who are not eligible for an SSN.

When International Forms Ask for a VAT ID

If you are a US business filling out a European or international supplier form that requests a VAT ID, you have a few options. You can enter your EIN and note that the US does not operate a VAT system. For EU platforms, you may need to declare your tax-exempt status or provide a W-8BEN or W-9 form instead. Some European businesses may simply accept an EIN as the US equivalent of a VAT ID for their records.

US Businesses Selling in Europe: Do You Need a VAT ID?

If your US-based business sells goods or digital services to customers in the European Union, you may actually be required to obtain a European VAT registration number — even though you have no US VAT ID. The EU's VAT rules require non-EU businesses to register for VAT in an EU member state if they sell taxable goods or services to EU consumers. The EU VAT OSS (One Stop Shop) scheme simplifies this by allowing you to register in just one country and report all EU sales through a single return.

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How to Apply for an EIN as a Foreign Business

Foreign businesses that need a US tax ID (EIN) — perhaps to open a US bank account, work with US clients, or comply with US withholding requirements — can apply through the IRS. Domestic online applications are instant, but foreign applicants without a US Social Security Number must apply by phone, fax, or mail. The IRS international EIN helpline is available specifically for overseas applicants, and the process can take from a few days to a few weeks depending on the method used.