This guide explains LEI vs VAT / EORI / BIC in plain English. You will learn what each identifier is for, how formats differ, and when companies must use them. Moreover, you will find quick tables, examples, and links to deep dives so your team can act with confidence.
At a glance: key differences
| Identifier | Purpose | Who/What it identifies | Format | Issued by | Where used | Renewal |
|---|---|---|---|---|---|---|
| LEI | Global entity ID for finance and reporting | Legal entities (companies, funds, etc.) | 20 alphanumeric (ISO 17442) | Accredited LOUs (under GLEIF) | Markets, banking KYC/KYB, trade reporting | Annual data renewal |
| VAT | Indirect tax registration | Taxable businesses | Country‑specific pattern | National tax authority | Invoicing, tax returns, compliance | Ongoing while active |
| EORI | Customs identification in the EU | Economic operators/traders | Member‑state based; EU‑wide recognition | EU customs authority | Import/export declarations | Stays valid; details must stay current |
| BIC | Financial institution routing | Banks/payment institutions | 8 or 11 characters (SWIFT) | SWIFT | Cross‑border payments, messaging | No annual renewal |
In short, these identifiers solve different problems. Therefore, you often need more than one: an LEI for global entity identity, a VAT number for tax, an EORI for customs, and your bank’s BIC for payments.
LEI — Legal Entity Identifier
The LEI is a 20‑character code that uniquely identifies legal entities worldwide. It supports transparency and speeds up KYC/KYB. Consequently, banks and regulators can reliably match the right company across systems.
New to the format? See our explainer: LEI code format (ISO 17442). Need the basics first? Read What is an LEI? To pick a provider, compare roles in Who issues LEIs.
VAT — Value Added Tax number
A VAT number registers a business for indirect tax. It appears on invoices and returns, and it follows national rules. While it identifies a taxpayer in the tax domain, it is not designed for global financial reporting. Therefore, it complements rather than replaces an LEI.
EORI — EU customs identifier
The EORI identifies traders for EU customs. You use it on import and export declarations. Formats reflect the member state of registration, yet the number is valid EU‑wide. Because it serves customs flows, you still need an LEI for market reporting or bank onboarding.
BIC — Bank Identifier Code (SWIFT)
A BIC (sometimes called a SWIFT code) identifies a financial institution in payment networks. It has 8 or 11 characters and routes cross‑border transfers. However, it does not identify your company; instead, it identifies your bank. Hence, you may provide both your LEI (entity) and your bank’s BIC (routing) in documentation.
FAQ
Do I need an LEI if I already have a VAT number?
Yes, if you operate in regulated markets or your bank requires it. The VAT number covers tax; the LEI covers global entity identity for finance.
Does EORI replace the LEI for trading?
No. EORI is for customs declarations. LEI is used for financial reporting and onboarding. Many traders will need both.
Is a BIC the same as an IBAN?
No. An IBAN identifies a bank account; a BIC identifies the financial institution. For international transfers you often provide both.
Authoritative reference used: GLEIF — LEI Basics.