A VAT (Value Added Tax) Number is a unique identifier that is assigned to businesses and other entities that are registered for VAT. VAT is a consumption tax placed on a product whenever value is added at each stage of the supply chain, from production to the point of sale. The amount of VAT that the user pays is on the cost of the product, less any of the costs of materials used in the product that have already been taxed.

The VAT number is crucial for businesses as it must be included on invoices and other VAT-related documents. This number is used by governments to track VAT payments and compliance. For businesses, the VAT number is essential for claiming tax credits on the VAT they have paid on their own purchases that are related to the business’s taxable outputs.

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