LEI vs VAT Number: What's the Difference?

Your company already has a VAT number — so why would it also need an LEI? The two look superficially similar but exist for completely different purposes.

What a VAT number is for

A VAT (Value Added Tax) number identifies your business within a tax system. It tells the tax authorities who charges and reclaims VAT, and it appears on invoices and returns. It's national — or, within the EU, tied to the EU VAT system — and means nothing outside its own tax jurisdiction.

What an LEI is for

An LEI (Legal Entity Identifier) identifies your business within the financial markets. It's a 20-character code built on ISO 17442 and governed by GLEIF, used so that regulators, banks and counterparties can identify exactly who is party to a trade, anywhere in the world. (See What is an LEI code?)

Side by side

Purpose: VAT = taxation; LEI = financial-market identity.
Scope: VAT = national/EU; LEI = global.
Governed by: VAT = national tax authority; LEI = GLEIF.
Visibility: VAT details are largely private; LEI data is openly public and searchable.

They aren't alternatives — a company active in the markets will typically hold both.

See also LEI vs DUNS number, LEI vs BIC/SWIFT and LEI vs TIN/EIN.