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Image header Agence Europe
Europe Daily Bulletin No. 8233
GENERAL NEWS / (eu) eu/taxation

Commission wants partial opening up of "VIES" system to companies to facilitate validity of customers' VAT identification numbers

Brussels, 14/06/2002 (Agence Europe) - From today, it will be easier for businesses across Europe to check the validity of their customers' VAT identification numbers on the Internet. The Commission has launched an online service which gives businesses access to certain parts of the system of electronic information exchange used between tax authorities, known as the "VAT Information Exchange System" or "VIES". Under current VAT rules, supplies of goods made by a trader in one Member State to a trader in another Member State are exempt from VAT in the country of origin. However, a trader making intra-EU supplies must be sure that his customer is subject to VAT in another Member State before despatching the goods free of VAT as otherwise he may have to pay the VAT himself. The Commission communiqué explained that until now, a supplier wishing to confirm the validity of the VAT identification number provided by his customer had to contact his own tax administration which would check the VIES and confirm that the number quoted was valid. The new service will save time and administrative costs both for businesses and tax administrations. In getting rid of the middle-man, the new service offered by the Commission will speed up the validation procedure, thus saving time and cutting costs for businesses as well as for tax administrations.

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