VAT number is a special code that any business is provided when they register themselves at the tax authority of the European Union. Suppliers are required to mention their customer’s VAT number on the invoice.
VAT validation can be confusing and time-consuming to deal with. Customers can now start their VAT validation procedure with an actual free VAT validation API. You can get the API without having to spend any money and it does not even have the hassles of authentication.
Thus, customers can easily make up to 10 requests every hour. If customers are willing to pay, it can make them get 200 requests each hour. Additionally, the customers are advised to go through the official website to have a better understanding of the dos and don’ts of automating VAT number validation.
Few of the excellent features that will help the customers have been mentioned below:
- No money required at any step
- Actual time VAT check
- Easily understandable and written in JSON format
- Start within seconds
- You can generate more utilization with a free API key
- No requirement of API key
An interesting fact about VAT is that generally while involving in business with companies inside the EU, there is no requirement for VAT. However, companies outside and those which do not have VAT registrations must be charged with VAT.
The EU even has made an online portal to ensure whether or not you are making a reasonable supply. In case you are not sure whether or not your customer is a taxable individual, as opposed to skipping VAT, you should be charging VAT.
Adding VAT numbers helps users to reduce plausible mistakes while adding new accounts and with financial documentation. Users can directly input a VAT number to ensure whether or not it is valid. After that, they can proceed with making business transactions and supplies.
The necessary details to be filled in are – name, country, address, city, ZIP, and account address. Digital products can be exempted from EU VAT if the products are sold to customers who are businesses or companies themselves.
If the customer gives a wrong VAT number, it will automatically lead to the invalidation of the invoice. If your customer is a business, you can easily charge zero VAT for them.
Online businesses operate differently from physical stores. For any product to enter the borders of the EU, they will first have to go through customs. If foreign businesses are exempted from VAT, that would incur more costs for businesses based in the EU.
If customers cannot provide VAT numbers, then VAT needs to be charged based on their location. You can either manually input the VAT number of your customer at VIES portal. In order to automatically generate the VAT numbers, implementing an API is an alternative option.
Now you can generate a free VAT validation API online. For online businesses that sell digital products, they use an automated procedure for checking customer’s VAT number. This would also reduce manual work. You will just have to wait for a few seconds before you get a response.