Independent EU VAT Information
Value Added Tax identification numbers serve as the cornerstone of cross-border commerce within the European single market. Every business engaged in taxable supplies must register for VAT in their home member state, receiving a unique identifier that enables participation in intra-Community trade. This identifier follows a standardised structure combining a two-letter country code with a national registration sequence, allowing tax authorities throughout Europe to track and verify commercial transactions.
The importance of VAT number verification extends beyond mere compliance. When businesses fail to validate their trading partners' VAT credentials, they risk losing the right to zero-rate intra-Community supplies, potentially facing substantial tax assessments and penalties. Understanding how VAT numbers function, where to verify them, and what the verification results actually confirm has become essential knowledge for accountants, procurement teams, and business owners operating across European borders.
VAT Registry Europe is an independent educational resource. This site is not affiliated with the European Commission, any EU institution, or national tax authority. Always confirm VAT status through official channels.
Essential VAT verification workflow
Valid verification confirms registration status at the moment of the query. It does not guarantee the accuracy of invoices or the creditworthiness of the business.
Each member state sets its own threshold for mandatory VAT registration. Germany requires registration from the first euro of taxable supplies, while other countries permit small businesses to operate without VAT registration until reaching specified turnover limits. These thresholds affect when foreign businesses must register and when domestic suppliers can trade without charging VAT.
Goods moving between EU member states between registered businesses qualify for zero-rating when proper documentation exists. The supplier must verify the customer's VAT number, ensure goods physically leave the country of dispatch, and maintain proof of transport. Missing any element can result in the supply being treated as domestic with full VAT liability.
Cross-border services between businesses generally shift VAT liability to the recipient through reverse charge. The supplier issues an invoice without VAT, the customer self-assesses VAT under domestic rules, and where entitled, claims an immediate input deduction. Understanding when reverse charge applies prevents both double taxation and accidental non-compliance.
The VAT Information Exchange System maintained by the European Commission provides real-time validation for EU VAT numbers. National tax authorities also operate their own verification portals with varying levels of detail. Some return only validity status while others display registered name and address, helping businesses confirm they are dealing with the correct legal entity.
The European Union's VAT framework represents one of the most comprehensive indirect tax systems globally, applying harmonised rules across 27 member states while permitting national variations in rates and administrative procedures. VAT functions as a consumption tax collected at each stage of production and distribution, with businesses acting as collection agents for their respective tax authorities. The unique identifier assigned to each registered business enables this system to function seamlessly across borders.
Every VAT identification number within the EU follows a defined format consisting of a two-letter country code followed by a sequence of characters that varies by member state. Germany uses nine digits after the DE prefix. France combines two letters or digits with nine additional digits. Italy employs eleven digits following the IT prefix. Spain incorporates letters at both the beginning and end of an eight-character sequence. These structural differences reflect historical national registration systems adapted to EU requirements when countries joined the common VAT framework.
The country prefix serves a critical function in international trade documentation. When a French company invoices a German customer for goods shipped across the Rhine, both VAT numbers appear on the invoice: the French supplier's FR-prefixed number and the German customer's DE-prefixed number. This dual identification allows customs officials, auditors, and the EC statistical services to track the flow of goods and verify that appropriate tax treatment has been applied.
Businesses established outside a member state may need to register for VAT in that country under various circumstances. Holding stock in a warehouse triggers registration requirements in most jurisdictions. Selling goods to consumers above the distance selling threshold necessitates registration or use of the One-Stop Shop mechanism. Organising events with paid admission requires local registration. Each scenario carries specific documentation and reporting obligations that vary somewhat between member states despite harmonisation efforts.
The registration process typically involves submitting an application to the relevant tax authority with supporting documentation proving business existence and the nature of planned activities. Processing times range from a few days in some Northern European countries to several months in jurisdictions with more bureaucratic procedures. Once registered, the business receives a VAT number and must comply with local filing obligations, which may be monthly, quarterly, or annually depending on turnover and the specific rules of that member state.
European case law has established that businesses claiming zero-rating on intra-Community supplies must demonstrate they took reasonable steps to verify their customer's VAT status. What constitutes reasonable steps depends on the circumstances, but at minimum includes checking the number through VIES at or near the time of the transaction. Many businesses implement automated verification systems that query VIES when creating sales orders or processing invoices, storing the results as part of their compliance documentation.
When VIES returns an invalid result, several explanations exist beyond straightforward fraud. The customer may have recently registered with their number not yet propagated to the central database. Temporary technical issues sometimes cause false negatives. The number might be valid but suspended for non-filing. In these situations, contacting the customer to request confirmation from their tax authority, checking again after a delay, or using national verification services as an alternative can resolve legitimate discrepancies while protecting against fraudulent trading partners.
Modern supply chains rarely follow simple bilateral patterns. Goods may pass through multiple member states before reaching their final destination. Services might involve establishments in several countries with different place of supply rules applying to each element. Understanding how VAT applies to triangular transactions, chain supplies, and mixed B2B/B2C activities requires careful analysis of the specific facts against the legal framework established by the VAT Directive and national implementing legislation.
Since July 2021, the One-Stop Shop has simplified VAT compliance for businesses selling to consumers across the EU. Rather than registering in each member state where customers reside, businesses can report all such sales through a single portal in their home country, which then distributes the collected VAT to the appropriate destination countries. The OSS covers intra-Community distance sales of goods, all B2C services with place of supply in another member state, and certain domestic supplies facilitated by electronic interfaces.
The Import One-Stop Shop handles consignments valued up to 150 euros shipped from outside the EU to consumers within the bloc. This mechanism replaced the previous low-value consignment relief that had been widely exploited by overseas sellers shipping goods without applying VAT. Under IOSS, sellers register in one member state, charge VAT at the time of sale based on the destination country's rate, and report monthly. Goods covered by IOSS declarations clear customs without VAT being collected at the border, speeding delivery and reducing friction.
Electronic marketplaces now bear direct responsibility for VAT on certain sales made through their platforms. When non-EU sellers use a marketplace to sell goods already in the EU to consumers, or when any seller uses a marketplace to sell goods in consignments up to 150 euros imported from outside the EU, the platform is deemed the supplier for VAT purposes. This shifts collection responsibility from potentially unregistered foreign sellers to established platforms with robust compliance infrastructure.
Several member states have implemented or announced mandatory electronic invoicing and real-time reporting requirements. Italy pioneered this approach with its Sistema di Interscambio requiring all domestic B2B and B2C invoices to pass through a central platform. Poland, France, and Germany have announced similar initiatives with varying implementation timelines. These systems aim to reduce VAT fraud by giving tax authorities immediate visibility into transactions while eventually eliminating paper-based compliance processes.
The European Commission has proposed an EU-wide digital reporting standard that would require businesses to transmit transaction data in real-time or near-real-time to tax authorities. While full implementation remains years away, the direction of travel suggests that VAT compliance will become increasingly automated and data-driven, placing greater emphasis on system integration and less on periodic returns compiled from historical records.
