ECNummern

ECNummern, also known as European Community numbers, are unique identifiers used within the European Union for businesses engaged in intra-community trade. These numbers are essential for Value Added Tax (VAT) purposes, ensuring that transactions between businesses in different EU member states are correctly taxed. A VAT identification number is composed of a country code followed by a series of digits.

The primary function of an ECNummer is to facilitate the application of the VAT reverse charge mechanism. This system shifts the responsibility of accounting for VAT from the supplier to the customer for certain types of transactions, particularly those involving cross-border services and goods between VAT-registered businesses. When a business supplies goods or services to another business in a different EU member state, and both parties have valid ECNummern, the supplier typically does not charge VAT. Instead, the recipient business accounts for the VAT in their own country.

To obtain an ECNummer, a business must be registered for VAT in their respective EU member state. They then typically apply to their national tax authority. The validity of an ECNummer can be checked through the VIES (VAT Information Exchange System) database, a system maintained by the European Commission, which allows businesses and authorities to verify the authenticity of these numbers. This verification process is crucial for preventing VAT fraud and ensuring the smooth functioning of the EU's single market. The use of ECNummern is a cornerstone of the EU's VAT system, promoting fair competition and preventing double taxation.