Tax ID

A Tax ID is a unique identifier assigned to individuals, businesses, and other entities by tax authorities to identify taxpayers and streamline the tax process. This identifier varies by country and can be known by different names, such as  “VAT Number”, “GST Number”, etc.

Validating a business's tax ID is crucial in certain B2B transactions, especially in cross-border transactions within the same tax jurisdiction, such as the European Union. In these situations, the reverse charge mechanism applies, transferring the responsibility of VAT collection from the seller to the buyer.