As a start-up entrepreneur, you get to deal with all sorts of terms. The VAT number, your VAT number, an OB number... Pretty confusing all those numbers. But don't worry. In this article, we clearly explain what the differences are, when you need which number and where to find them.
What do the terms VAT, VAT and OB mean?
These three terms all revolve around the tax on your turnover. Put succinctly:
- VAT stands for value-added tax (the Dutch term).
- VAT is the international abbreviation for Value Added Tax.
- OB means sales tax, this is the term used by the Inland Revenue.
In the end, they all come down to the same thing: tax on what you sell as an entrepreneur.
What is a VAT number?
The VAT number is really just your international VAT number. You need this number if you do business within the EU (for example, if you invoice a customer in Germany or Belgium). The VAT number plays an important role in the VAT rules between EU countries.
A Dutch VAT number always starts with NL, followed by 9 digits and an addition. As an example: NL001234567B01.
What is a VAT number?
In the Netherlands, the VAT number is also known as the VAT identification number. As a self-employed person, you use this number on your invoices. You can also use it on your website or your company's webshop.
Since 2020, sole traders have had a separate VAT ID, with no link to the BSN. You use this VAT ID for business communication with customers and suppliers. This must be done both in the Netherlands and within the EU.
What is an OB number?
The OB number is the number you use in your communication with the tax authorities. You need this number for your VAT return or when you call the tax phone.
For sole traders, the OB number is often based on your BSN, with an addition such as B01. Then again, you don't put this number on your invoices, but only use it for the tax authorities.
Difference between VAT number and VAT number
In fact, VAT number and VAT number are the same: your VAT ID. The only difference is in the language or situation. VAT is the Dutch term, while VAT is actually used internationally. The number itself remains the same, so you choose the right number depending on the context.
When do you use which number?
You put your VAT and VAT number on your invoices, your company website and in international trade. You only use your OB number for communication with the tax authorities (e.g. for your VAT return).
In short, for customers you use your VAT ID and for the tax authorities you use your OB number.
Common misunderstandings
Many entrepreneurs think that VAT number and VAT number are different numbers. But that is so not the case. In fact, it often happens that entrepreneurs put their VAT number on their invoice by mistake. This is not the intention; your VAT ID is the number to use in that case.
Where can I find my VAT number and OB number?
You can find both the VAT number and the OB number in the letters from the Tax Office or via My Tax Office Business. Don't worry, we have a clear step-by-step manual prepared in which you can see exactly where to find the numbers.
Conclusion
As an entrepreneur, you usually have two numbers:
- Your VAT ID (also called VAT number). You use this number on your invoices and towards customers.
- Your OB number. You only need this number when contacting the tax authorities.
The terms can be confusing at first, but once you know which number is for what, it becomes clear and simple.
