Intra-Community VAT number (EU VAT) and how to check it

In today’s e-commerce environment, where businesses operate internationally, transactions across national borders are inevitable. In such a context, knowing the procedure for checking the intra-Community VAT number (EU VAT) is crucial for e-commerce sellers operating within the European Union. But what is this number actually and how can it be checked?

What is an intra-Community VAT number?

An intra-Community VAT number, also known as EU VAT, is an individual identifier allocated to companies in the European Union that are liable to pay VAT. It is a kind of European equivalent to a national tax identification number (TIN). Any EU VAT taxpayer can apply for an EU VAT in their country, especially if they plan to trade between countries in the EU.

For what purpose is an intra-Community VAT number used?

The EU VAT number is necessary for the correct accounting of VAT on inter-country transactions within the EU. It must appear on invoices, VAT returns and INTRASTAT declarations that relate to the exchange of goods or services between EU Member States. This is a necessary condition for all intra-Community transactions. Failure to have a correct EU VAT number can lead to inappropriate tax being charged, which can have negative financial consequences for the business.

How to check an intra-Community VAT number?

There are three main ways to check the correctness of an intra-Community VAT number:

Checking on the invoice: The EU VAT number should be visible on the invoice or other document issued by the EU VAT taxable person. Make sure that this number matches the entity’s details.

Using the VIES search engine: The VAT Information Exchange System (VIES) is the EU platform for verifying EU VAT numbers. Simply go to the VIES website, select the country and enter the VAT number to be verified. The system will immediately verify the correctness of the EU VAT number.

Contact your tax office: If you have any doubts about the correctness of your EU VAT number, you can contact the relevant tax office in the seller’s or buyer’s country. Tax officials are able to confirm the correctness of the number and provide additional information related to the VAT settlement.

Why should you check your intra-Community VAT number?

Checking the correctness of the EU VAT number is crucial to avoid incorrect tax settlements and possible problems with the tax authorities. The correct use of the EU VAT number also avoids overpayment of VAT on inter-country transactions.

Summary

The intra-Community VAT number (EU VAT) is a key element for businesses operating within the EU. The correctness of this number is essential for the correct accounting of VAT in international transactions. Therefore, knowing the procedure for checking it is important for e-commerce sellers who wish to trade on the European market. With the tools available and the cooperation with the tax authorities, checking the correctness of the EU VAT number should not be a difficulty for any trader.

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If you have any doubts or need professional advice, we offer comprehensive support in the field of VAT registration and settlement through our VAT Compliance service in Europe: Contact us – amavat ®.

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amavat^® Team