Yes, a GST number (Goods and Services Tax) is essentially the same as a VAT number (Value Added Tax) in function, as both are unique, alphanumeric identifiers issued by tax authorities to businesses for registering, collecting, and remitting indirect consumption taxes. The terminology used depends on the country.
Some countries require their businesses to register for Value Added Tax (VAT), also known as Goods and Services Tax (GST) in certain countries. The VAT or GST number is a unique identifier issued by the country's tax authority for collection of the tax.
VAT (Value Added Tax) and GST (Goods and Services Tax) are fundamentally the same type of consumption tax, levied on goods and services at each stage of the supply chain, but the terms are used in different countries and can have structural differences, with GST often being a unified, simpler system replacing multiple taxes (like VAT, sales tax, excise duty) into one, as seen in India and Canada. Both ensure the final consumer pays the tax, while businesses get credits for tax paid on inputs, but specific implementation, rates, and administration vary by country (e.g., EU uses VAT, India uses GST).
The Goods and Services Tax Identification Number (GSTIN) is a unique 15-digit code assigned to every GST-registered business. It serves as a digital identity for taxpayers, facilitating seamless tax compliance, Input Tax Credit (ITC) claims, and transparent transactions.
The VAT rate in Canada is the Canadian Federal GST of 5%.
It applies to most goods and services with a few exemptions. These include most health, medical and dental services, legal aid services, long-term residential rentals, music lessons and some child care services.
The Goods and Services Tax (GST), which has replaced the Central and State indirect taxes such as VAT, excise duty and service tax, was implemented from 1st July 2017.
In Canada, VAT is referred to as the Goods and Services Tax (GST). All businesses in Canada are assigned a VAT (GST) number by the CRA for tax purposes. The standard VAT rate (GST rate) in Canada is 5%.
VAT (Value Added Tax) and GST (Goods and Services Tax) are both consumption taxes levied on the purchase of goods and services, typically at each stage of the supply chain. While they function similarly, their terminology varies depending on the country implementing them.
To know your GST number using a PAN card, please visit the GST web portal www.gst.gov.in. Go to the option Search Tax Payers; click on the tab "Search by PAN". Enter the PAN number you want to know, and the GST number, and then press the SEARCH button.
The United States EIN: The Federal Tax Identifier. Since there is no VAT number in the US, the United States EIN (Employer Identification Number) is what businesses use instead when asked for a tax identifier.
GST is not called VAT. VAT is a state-level consumption tax, while GST is a comprehensive, national-level consumption tax that replaced VAT and other indirect taxes in India.
Calculating VAT Amount
VAT (Value Added Tax) and GST (Goods and Services Tax) are fundamentally the same type of consumption tax, levied on goods and services at each stage of the supply chain, but the terms are used in different countries and can have structural differences, with GST often being a unified, simpler system replacing multiple taxes (like VAT, sales tax, excise duty) into one, as seen in India and Canada. Both ensure the final consumer pays the tax, while businesses get credits for tax paid on inputs, but specific implementation, rates, and administration vary by country (e.g., EU uses VAT, India uses GST).
Value Added Tax (VAT) Number – This number is issued by taxing authorities in countries that use the VAT system to collect indirect tax on purchases. You'll never receive a VAT number from the IRS or US states.
You have to register for a GST/HST account if both situations apply: You are not a small supplier. You make taxable sales, leases, or other supplies in Canada (unless your only taxable supplies are of real property sold other than in the course of a business)
You must register online using Business Registration Online (BRO). When you register for a GST/HST account, you will be asked to provide your business number (BN) if you have one. If you do not have a BN, you will get one at the same time as your GST/HST account registration.
Example of GST Number Format
ABCDE1234F: This is the Permanent Account Number (PAN) of the business. 2: The second registration of this business with the same PAN in this state. Z: This is a default character used by the system. 5: This is a checksum digit for validation.
Registration under GST is a legal requirement for businesses. The CGST Act 2017 specifies minimum turnover criteria for registration (Rs 40 lakhs for goods and Rs 20 lakhs for services). Still, certain specific businesses are required to register under the GST, irrespective of their annual turnover.
VAT is levied on goods, and GST is levied on both goods and services. Even though GST requires less compliance, it can still be complicated, especially for laymen. You can get expert help for GST-related services like GST registration and GST filing.
In many ways, GST and VAT are simply two words for the same tax. You can think of VAT as a type of Goods and Services Tax or GST as a type of Value Added Tax, but they essentially mean the same thing.
Types of indirect taxes (VAT/GST and other indirect taxes) The United States does not have a national sales tax system.
VAT, or Value Added Tax, is a type of tax charged to goods and services in many countries. Canada has a federal version of the VAT called the Goods and Services Tax (GST). On top of that, most provinces have a provincial version of VAT called PST or QST.
Depending on your location, you may be requested to provide your VAT registration number under your Billing information; it is a required field. If your company does not yet have a VAT number, you could circumvent this requirement by adding a dash "-" in the VAT field.