Companies and traders must navigate LEI vs EORI vs VAT to ensure compliance. Knowing the difference is key to avoiding costly delays.
If you trade across borders, invest in financial markets, or sell taxable goods and services, you’ll encounter several essential identifiers. In the UK, three of the most important are LEI, EORI, and VAT numbers. Each serves a unique function, is governed by different regulations, and is issued by separate authorities. Confusing them can delay shipments, block financial transactions, or trigger HMRC investigations. Understanding which identifiers you need is crucial for smooth operations and compliance.
This guide breaks down the differences and overlaps between LEI, EORI, and VAT numbers, using clear explanations, practical examples, and actionable checklists for companies, funds, charities, sole traders, and groups.
Understanding Each Identifier
LEI: Legal Entity Identifier
A Legal Entity Identifier (LEI) is a 20-character alphanumeric code that uniquely identifies legal entities participating in financial transactions. It’s essential for trading listed securities and many over-the-counter derivatives, as required by regulations such as MiFID II, EMIR, and SFTR. Banks, brokers, trading venues, and trade repositories use the LEI to verify your organisation’s details before processing orders or regulatory reports.
LEIs are issued by GLEIF-accredited organisations. In the UK, RapidLEI is a popular choice, often accessed through official agents. The LEI database is public and searchable, containing details like legal name, registered address, company number, and—where available—parent company relationships.
EORI: Economic Operators Registration and Identification
The EORI number is your gateway to customs processes. It’s required for moving goods into or out of Great Britain or Northern Ireland, and is necessary for completing import/export declarations, customs clearances, and communicating with HMRC or EU customs authorities. HMRC issues EORI numbers, with UK numbers typically starting with GB, and XI for Northern Ireland when trading with the EU.
Without an EORI, customs clearance is impossible. Service-only businesses generally don’t need one unless they also handle physical goods.
VAT Registration Number
A VAT registration number confirms your registration with HMRC for Value Added Tax. You’ll need it if your taxable turnover exceeds the VAT threshold, or if you choose to register voluntarily. This number appears on invoices, VAT returns, and is used for import VAT accounting and reclaiming input VAT.
Registering for VAT brings responsibilities: charging VAT where required, issuing compliant invoices, filing returns, and maintaining accurate records.
How to Obtain Each Identifier
Steps to Get an LEI
- Select a GLEIF-accredited provider or agent. Agents linked to Companies House can speed up verification.
- Complete a streamlined online application, providing your company name, registration number, registered office, and contact details.
- Review the terms, pay the fee, and submit your application. Many providers offer multi-year plans with auto-renewal.
- The provider checks your details against official records. Once verified, your LEI is issued—often within minutes.
LEIs require annual renewal to remain valid. Trustworthy agents will update your name and address automatically if changes are reflected in public registries.
For a fast, cost-effective solution with English-language support, LEI Service is an official RapidLEI registration agent. Their one-minute form is integrated with Companies House, enabling rapid issuance.
Steps to Get an EORI
- Log in to the HMRC portal using your Government Gateway credentials.
- Provide your business details, VAT registration status (if applicable), and customs contact information.
- If trading via Northern Ireland, request the XI prefix as needed.
Approval is typically swift, with your EORI number sent by email. Keep it handy for your freight forwarder or customs broker.
Steps to Get a VAT Registration Number
- Assess your taxable turnover and select the most suitable VAT scheme—standard, flat rate, or cash accounting.
- Apply through HMRC’s online platform, supplying details about your business activities, bank account, and records.
- Respond to any additional HMRC queries, which are more common in high-risk sectors or for first-time importers.
Once registered, you’ll receive your VAT number and effective date. You can then issue VAT invoices and reclaim input VAT according to the rules.
Special Cases and Practical Insights
- Groups and Branches: Each legal entity must have its own LEI if required. Parent company LEIs don’t extend to subsidiaries. For VAT, groups can opt for a single VAT group number, affecting how supplies are managed internally. EORI numbers are typically assigned to the legal entity acting as importer of record.
- Trusts and Funds: Many funds and trusts need LEIs for regulatory reporting. Complex structures may require multiple LEIs, including separate codes for umbrella funds and sub-funds if they are distinct legal entities.
- Non-UK Entities: Non-UK companies importing into Great Britain need a GB EORI, even if they already have an EU EORI. For trading in UK or EU financial markets, an LEI from any GLEIF-accredited issuer is usually required.
- Crypto and Digital Assets: LEI requirements in the UK mainly apply to securities and derivatives. For regulated tokens, brokers may request an LEI. VAT and tax treatment of crypto assets varies, so specialist advice is recommended.
- Postponed Import VAT Accounting: Importers can record import VAT on their VAT return instead of paying at the border, improving cash flow. This requires both VAT registration and an EORI.
Real-World Scenarios
Consider these examples to clarify which identifiers apply:
- A UK limited company expanding from domestic B2B services to importing components from Asia for resale: Needs a GB EORI for customs, will likely register for VAT to reclaim import VAT and charge VAT on sales, but doesn’t require an LEI unless it starts trading on capital markets.
- A charity managing an endowment fund with an asset manager: Needs an LEI for investment account activation. VAT depends on the charity’s trading activities, not its investments. EORI is only necessary if the charity imports or exports physical goods.
- A UK online marketplace seller entering the EU market: Requires a GB EORI (and possibly an XI number for Northern Ireland routes), plus EU VAT registration or IOSS for low-value consignments. LEI is not needed for retailing physical goods.
How Your Details Are Checked
Brokers and trading venues confirm your LEI status using the Global LEI Index. An expired or inactive LEI can halt trades or disrupt regulatory reporting.
Customs agents and freight forwarders rely on your EORI for declarations and HMRC communications.
Customers and suppliers validate your VAT number to check invoice legitimacy and determine reverse charge conditions for cross-border B2B transactions.
Keeping all three identifiers up to date and ensuring your company details match across Companies House, LEI records, and HMRC submissions helps avoid last-minute complications.
Risk and Compliance: What to Watch For
- LEI Renewal: Letting your LEI lapse can result in rejected trades or misreported transactions. Renew annually to keep your data current and reflect any corporate changes.
- EORI Accuracy: Mistakes in EORI usage or customs declarations can delay shipments and incur fines. Always ensure the correct importer of record is listed.
- VAT Compliance: VAT registration brings the obligation to file returns regularly, maintain accurate records, and issue compliant invoices. Understanding place of supply rules is vital for smooth audits.
By understanding the distinct roles of LEI, EORI, and VAT numbers—and keeping them current—you’ll ensure your business operates efficiently, remains compliant, and is ready for growth in the UK and beyond.
