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Originally Posted by miob
it's tax id if you live in eu and have company you must have tax id , called VAT
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Actually VAT was a extra tax added to consumers sometime around 60-70s I think (not really sure, but a long time ago)
More or less it means everytime a consumer buy something you have to add a extra x% on top of your price and pay as a sales tax, the VAT.
A company can save their reciepts and get any VAT paid back again, and 2 companies within EU does not need to charge VAT when dealing with each other.
Anyone doing business within EU (ie have sales / members / customers / whatever) need to be registered to pay VAT once they reached ?100K in total for all countries that is a member of EU (the amount does NOT reset every year)
Anyone that have charged more than 3500 monthly transactions for their membership site (asuming price is ~?30 / $35) basicly need to charge VAT from their EU customers