VIES Vat Number Validation In SAP

REGULATION

What Is VIES And How It Works

With the introduction of the single market on the 1st of January 1993, fiscal customs-based controls at internal frontiers were abolished and a new VAT control system was put in place for intra-community trade. The most significant benefit of this was the reduction of the administrative burden on companies; with the elimination of some 60 million customs documents per annum.

Under the new VAT system, intra-community supplies of goods are exempt from VAT in the Member State of despatch when they are made to a taxable person in another Member State who will account for the VAT on arrival. Consequently, any taxable person making such supplies must be able to check quickly and easily that their customers in another Member State are taxable and hold a valid VAT identification number. For that purpose, each tax administration maintains an electronic database containing the VAT registration data of its traders. This information includes the VAT identification number, the trader’s name, and the trader’s address.

REGULATION

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