Understanding the VIES to Validate EU VAT ID

In the EU, the VAT system for intracommunity trade exempts member states that dispatch goods from paying VAT if the receivers of the goods in the other member states are taxable persons who will account for the VAT on receiving the goods. Suppliers must verify if the customers receiving the goods are taxable persons and hold a valid VAT identification number.

The European Commission set up the VAT Information Exchange System (VIES) Web service to enable quick and easy validation of VAT identification numbers throughout the EU community. The Central Liaison Office (CLO), which is the unit responsible for controlling intracommunity trade in each member state, has direct access via VIES to the VAT registration database for other member states.