What is a VAT number? Do I need to provide one?

For registered businesses in the European Union and United Kingdom, we can apply what is known as the Reverse Charge tax to your online orders. 

While there is more to this tax scheme, the short version is that we do not charge you VAT when placing an order or contracting our services, however you do need to account for the VAT with your local tax authority. That is typically done by submitting an Intra-Community Declaration every year or quarter, with the total amount purchased and our VAT number (NL001103641B07).

Businesses outside the European Union/United Kingdom do not have to provide a VAT number and will not be charged VAT. Businesses in the Netherlands also do not have to provide a VAT number, and will always be charged the Dutch VAT rate due to modmore being a Dutch business.

As the Reverse Charge mechanism is only available to VAT-registered businesses, you must provide a valid VAT number during the checkout to be eligible. 

If you are from the European Union but do not provide a valid VAT number, you will be considered a consumer for VAT purchases, and charged your local standard VAT rate.

Businesses in the Netherlands cannot benefit from this scheme as we are obliged to charge the Dutch VAT rate.

If you have questions about the reverse charge scheme, we recommend consulting your bookkeeper or accountant. Do note that if you place an order without a valid VAT number and are charged VAT, we will not be able to refund the VAT for you if you provide a valid VAT number at a later date. You can however get the VAT refunded through your next tax return.