VIES System Explained

VIES System Explained

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August 7, 2025

✅ What is VIES and who runs it?

VIES (VAT Information Exchange System) is the official VAT validation search engine provided by the European Commission, designed for checking the validity of intra‑EU VAT numbers . It doesn’t have its own database—when you submit a VAT number, VIES forwards the request to the appropriate national VAT database and returns a YES/NO response, plus optional details like company name and address if the member state allows (Wikipedia).

🌍 Which countries are supported?

  • All EU Member States

  • Northern Ireland businesses under the XI code (GB VAT numbers are no longer supported since Brexit) (European Commission)

  • Support is based strictly on countries participating in the EU VAT system.

Note: The tool does not validate VAT numbers from non‑EU countries such as Switzerland, Norway, or the UK (except NI) via VIES, though some third-party validators like VATcomply support them separately (iban.com).

⚙️ How it actually works

You select a Member State country code from a drop-down then enter the VAT number (without spaces, prefixed by the two-letter code). VIES then:

  1. Sends the query to that country’s VAT database.

  2. Returns:

    • Valid” – VAT exists and is active for intra-EU transactions.

    • Or “Invalid” – VAT number does not exist, not yet activated, or not yet registered for intra‑EU trade.

  3. Optionally, displays company name and address—this depends on the national authority’s data disclosure policy (vies.cz, europa.eu).

💡 Benefits of using VIES

  • As required by EU law, VAT must be cross‑checked before applying the 0% VAT rate on cross‑border business-to-business (B2B) transactions, and VIES helps satisfy that requirement.

  • Offers a timestamped reference number that can be kept as proof in case of tax audits.

⚠️ Limitations to be aware of

  • Not a database—depends entirely on national databases; so delays or inaccuracies are possible.

  • Downtime issues—especially during busy VAT seasons. Some countries (e.g. Germany, Belgium) historically suffer occasional outages, with availability dropping ~30% in peak periods (fonoa.com).

  • Partial data—some countries refuse to share company name or address, so you may only see a “Valid” without identifying information.

  • A “Invalid” result doesn’t always mean fraud—it could reflect registration thresholds, delays, or de-registration rules in certain countries (such as Poland delisting low transaction taxpayers from VIES.


🎯 Final verdict

In addition to VIES verification, the P2PSpace Merchant AI Agent verify VAT numbers, providing fast and reliable access to the EU VIES System.


P2PSpace Vendor AI Agent

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