VIES: Value Added Tax Information Exchange System
VIES, which stands for Value Added Tax Information Exchange System, is an important tool for businesses operating within the European Union (EU). It is an IT system that allows verification of VAT payers registered as traders within the EU. Its goal is to ensure transparency and proper identification of traders across the EU.
What does VIES provide?
VIES is a tool that enables users to verify whether a given business is registered as a trader in the EU. This system was developed by the European Commission and retrieves data from national databases in individual EU member states. Users can easily check the validity of a trader’s VAT identification number (VATIN) and obtain confirmation of whether this entity is a VAT payer within the EU.
VIES API: For easier access
The VIES API (Application Programming Interface) service provides easier access to the functionalities of the VIES system. This website offers programming libraries, a REST interface, and an Excel add-in, allowing programmers and ordinary users to efficiently verify their business partners within the EU. The VIES API is designed to provide maximum efficiency and stability.
Using the VIES system
To verify a VAT payer in the VIES system, the user must provide the EU member state of origin and its VATIN within the EU. The result of the verification is confirmation of the validity of the VATIN or information about its invalidity for cross-border transactions within the EU.
Importance of verification in the VIES system
Verifying VAT payers in the VIES system is crucial for applying a 0% VAT rate for transactions within the EU. Entrepreneurs conducting such transactions must be registered for VAT in the EU. Therefore, it is essential to verify the validity of the VATIN of the business partner.
What to do in case of incorrect information
If the VIES system provides incorrect data about a VAT payer, it is necessary to verify the accuracy of the provided information and potentially contact the business partner. If the problem persists, it is advisable to contact the relevant tax authority for clarification of the situation or updating of the data.
VIES is an integral part of the business environment within the EU. It provides an important tool for verifying VAT payers and ensures transparency and proper identification of traders. Its use is essential to ensure compliance with tax regulations and successful completion of cross-border transactions.
