Verification of EU VAT in the VIES system involves checking whether a contractor’s VAT number from another EU country is active and authorizes intra-Community transactions. Simply select the Member State, enter the VAT number, and start the search – the system will confirm the correctness of the data and the company’s status in the EU VAT register.
Table of contents
What is VIES VAT?
VIES VAT (VAT Information Exchange System) is a European Commission tool used to verify EU VAT numbers of companies registered for intra-Community transactions. Thanks to the VIES search engine, entrepreneurs can check the correctness of a contractor’s VAT number and its activity status. Confirmation of the number’s validity in the system is necessary to safely apply the 0% VAT rate in trade within the EU and avoid the risk of tax errors.
What is the purpose of the VAT VIES system?
The main purpose of the VIES (VAT Information Exchange System) is to enable entrepreneurs and tax administrations to quickly and reliably verify EU VAT numbers assigned to companies operating in the European Union. This tool allows confirmation that a contractor is registered for intra-Community transactions and has the right to apply the NP or 0% VAT rate. VIES supports the security of business transactions, reduces the risk of tax fraud, and facilitates the correct settlement of VAT from intra-Community transactions.
What data does the VIES database contain?
The VIES (VAT Information Exchange System) database provides entrepreneurs with two key pieces of information:
- EU VAT number is active – the entity has been registered as a European, active VAT taxpayer,
- EU VAT number is inactive – the number does not appear in the national database as valid on a given day.
The “inactive” VAT number status may mean that the VAT number of the entities being checked does not exist, has not been activated for intra-Community transactions, or registration is in progress. In some Member States, according to local regulations, the system may additionally provide the name and address of the company associated with the EU VAT number.
When should the EU VAT taxpayer’s identification number be checked?
Verification of a contractor in the VIES system is necessary primarily when wanting to apply the 0% VAT rate for intra-Community supply of goods or NP for intra-Community supply of services. The application of the appropriate tax option depends on information about the active status of the VAT number of the value added tax payer:
- Domestic tax rate;
- 0% or NP rate for European transactions;
- VAT transaction taxation place other than domestic.
When is checking EU VAT in the VIES search engine advisable?
Checking the EU VAT number in the VIES system is advisable whenever an entrepreneur plans or executes an intra-Community transaction – sale or purchase of goods and services between companies registered in different European Union countries. Verification of the contractor’s number allows one to ensure that they have the status of an EU-VAT taxpayer, which is a condition for applying the 0% VAT rate or NP. Regular checking of EU VAT protects against errors in settlements and minimizes tax risk in international trade.
What does the VAT rate depend on?
The VAT rate in intra-EU transactions depends, among other factors, on the type of transaction (goods or services), the place of supply, the contractor’s VAT status, and whether the supplier is registered for VAT OSS. Whether the 0% VAT rate, the domestic rate, or NP (not subject to VAT) can be applied depends on the individual situation of the business. If you are unsure which rate to apply – contact us, and we will be happy to help you with the correct VAT settlement.
Checking EU VAT - How to do it step by step?
To check a contractor’s EU VAT number, follow these steps:
- Go to the official VIES VAT search engine website run by the European Commission.
- Select the contractor’s country of registration from the dropdown list.
- Enter the EU VAT number you want to verify.
- Click the “Check” button and wait for the result.
- You will receive information on whether the VAT number is active or inactive – in some countries, the company name and address will also appear.
Additionally, the result should be printed or saved as proof of verification for tax settlement purposes.
How to check EU TIN? - Step 1: Go to the official VIES website
The first step is to visit the European Commission’s official website with the VIES search engine. The search engine is available in 23 European Union languages, allowing you to choose your preferred interface language
How to check EU TIN? - Step 2: Select the country and enter contractor data
In the second stage of verification in the VIES VAT system, you need to select the contractor’s country of registration from the list of available EU Member States or indicate Northern Ireland. Then enter the EU TIN (EU VAT) of the company being checked, according to the format applicable in the given country.
After entering all the required data, click the “Verify” or “Check” button. The checking process may take a few seconds, depending on the load on the European Commission servers and national tax systems.
How to check EU TIN? - Step 3: Check EU VAT status
The final stage of checking the EU VAT of a potential contractor in the VIES search engine is verification of the VAT status. There are two possible results:
- Active VAT number;
- Invalid VAT number.
EU VAT Status - Active VAT number
Positive verification results in displaying the message “VAT number active,” confirming that the entrepreneur is registered as a European VAT payer. Such a result allows for issuing an invoice without charging VAT for intra-Community transactions (WDT).
EU VAT Status - Invalid VAT number
A negative verification result means displaying the message “invalid VAT number for cross-border transactions within the EU.” This situation indicates that the verified entity is not currently reported as an active EU-VAT taxpayer. The reasons may be as follows:
- The contractor has never been registered for EU-VAT;
- Registration is in progress;
- The entity has been removed from the VAT taxpayer database.
In case of a negative result, there are several possibilities. It may be necessary to charge VAT on the invoice according to the rate applicable in the EU country of the seller or buyer, if the seller is registered for VAT OSS. If you are in a situation where verification of the contractor’s VAT status gave a negative result, we encourage you to contact us! Our team of specialists will help you make the right decision!
Remember that verification in VIES only confirms registration for European transactions (EU-TIN number). It is not used to check the taxpayer’s status for domestic transactions or VAT exemption status.
What to do when the EU VAT number is inactive?
If the VIES VAT system displays the “inactive” status, it means that the EU TIN number does not appear in the national database as registered for intra-Community transactions. In such a situation, you should:
- Verify the VAT number again – make sure it was entered correctly,
- Contact the contractor to confirm their EU-VAT registration,
- In case of doubt, seek information from the national tax administration.
What are possible reasons for an inactive VAT number?
Among the potential reasons for an inactive VAT number in the VIES search engine, it can be indicated that:
- The EU VAT number does not exist in the national database;
- The number has not been activated for intra-EU transactions;
- Tax registration has not yet been completed;
- Changes in the taxpayer’s status have not been updated in the system.
It should be remembered that some EU countries require separate registration for intra-Community transactions, which is not always immediately visible in the VIES system.
What are alternative verification methods besides the VIES search engine?
Apart from the VIES VAT system, entrepreneurs can check the contractor’s status in other ways:
- Checking the number in the national tax database - in Poland, you can use the Ministry of Finance database;
- Direct contact with the tax administration of the given EU country;
- Obtaining official confirmation from the tax office.
What are the consequences of an incorrect VAT number?
Providing or using an incorrect EU VAT number carries serious financial consequences. An EU contractor cannot apply the preferential 0% VAT rate or NP, which means charging the Polish buyer with tax according to the rate applicable in the supplier’s state or the VAT rate from the EU country of the buyer, if the seller is registered for VAT OSS.
Transport industry and EU VAT verification
EU VAT verification is also crucial in the transport industry, where business partners are often entities from other EU countries. Therefore, before starting cooperation with a potential partner, it is worth verifying their EU VAT number.
This allows carriers and freight forwarding companies to ensure that their business partners are registered as active EU VAT taxpayers, which helps avoid problems with VAT deduction, invoice errors, and potential disputes with tax authorities.
Verification of EU VAT number in the VIES system - summary
Verification of the EU VAT number in the VIES system allows checking whether the EU-TIN number of a contractor from Poland or another European Union country is active and authorizes intra-Community transactions. Confirmation of the EU-VAT taxpayer status gives the right to apply the 0% VAT rate or NP, and lack of such verification threatens additional costs and tax problems.
Checking the EU TIN number in the VIES search engine - Frequently Asked Questions
Below we have collected questions about how to check EU TIN in the VIES search engine that we hear most often and provided answers to them. If you haven’t found an answer to your question, contact us – our team will be happy to help!
What is VAT (value added tax)?
VAT (value added tax) is an indirect tax imposed on most goods and services at each stage of economic turnover. In practice, this means it is added to the selling price, and its burden is borne by the final consumer. Entrepreneurs act as intermediaries – they charge VAT on invoices and then settle it with the tax office, deducting the tax charged on purchases.
What other names is the EU VAT number known by?
How to check a contractor’s EU VAT number in the VIES system?
How does a TIN number differ from an EU VAT number?
What are the consequences of not having an active EU VAT number?
Why is it worth regularly checking your own status in the VIES system?
What to do when verification of a contractor’s EU VAT number in VIES gives a negative result?
What is an EU tax identification number?
Unless stated otherwise - Savesta.eu texts are distributed under the CC BY-NC-ND 4.0 DEED license. The distributed content cannot be considered as professional legal advice or consultation.