Free internet tool checks the validity of any VAT number

The Commission’s service gives businesses access to certain parts of the system of electronic information exchange used by tax authorities, known as the "VAT Information Exchange System" or "VIES". The new service exists to save time and administrative costs both for businesses and tax administrations.

When to use the validation service

Under current VAT rules, supplies of goods made by a trader in one Member State to a trader in another Member State are exempt from VAT in the country of origin, on the basis that they will be taxed in the country of destination. However, a trader making intra-EU supplies must be sure that his customer is subject to VAT in another Member State before despatching the goods free of VAT as otherwise he may have to pay the VAT himself.

Until now, a supplier wishing to confirm the validity of the VAT identification number provided by his customer had to contact his own tax administration which would check the VIES and confirm that the number quoted was valid. This is part of the Commission's work to make doing business in the EU's internal market as simple as possible, by removing practical obstacles which are a headache for businesses.

The on-line service allows checking of the databases of VAT registration numbers which each Member State maintains as part of the VIES.

The database of VAT identification numbers is only one aspect of the VIES. Members of the public logging on to the site will not be able to see any of the other VIES information which is used by Member States' taxation authorities for VAT control purposes and which should, in the interests of taxpayer confidentiality, remain reserved for the use of taxation authorities only.

Under the current VAT system, all intra-EU supplies between traders subject to VAT are exempted from VAT in the country of sale, the tax being declared at destination by the receiving trader. Normally the customer provides his VAT identification number to the supplier when he orders the goods. However, it is the responsibility of the supplier to confirm that his customer is indeed VAT registered in another Member State before he sends the goods free of VAT. Otherwise the supplier may be obliged to pay the VAT himself.

Up to now, a supplier wishing to confirm the validity of the VAT identification number provided by its customer generally had to contact its own tax administration which would check the VIES and confirm that the number quoted was valid. The new service cuts out the intermediary step.

The tool is located at: http://europa.eu.int/vies