The Importance of a Business VAT Status
According to European regulations and the guidelines of the Belastingdienst, when issuing an invoice within the EU, you must ensure that your customer has an active VAT number.
Importantly — and this is not widely known — the tax authorities may request proof that you verified this number at the exact moment the invoice was issued.
In practice, most companies overlook this obligation. They lack time, direct access to the VIES system, or the ability to store confirmation. However, this seemingly small oversight can lead to serious consequences. These include corrections to tax returns, loss of the right to deduct VAT, and even financial penalties.
That is why eFaktura.nl introduced automatic VAT number verification of the invoice recipient at the moment of issuing the invoice. You do not need to remember additional steps or copy any data — the application does it for you.
New Restrictions on VAT Verification
Since 2025, many EU countries — including the Netherlands, Belgium, and Germany — have tightened enforcement of VAT number verification in intra-EU transactions.
Although the obligation already existed, tax authorities may now require proof that the verification was performed exactly at the time the invoice was issued. This change is linked to preparations for the EU VAT reform (ViDA) and the growing focus on digital VAT control.
The Role of the VIES Database
VIES (VAT Information Exchange System) is the official EU database used to check the validity of VAT numbers of companies registered within the EU. The system works online and in real time.
If a VAT number appears as “active,” you can be confident that the customer is a legitimate VAT taxpayer in another Member State.
With eFaktura.nl, you do not need to visit the official VIES website. The application is fully integrated with the database. When you enter a VAT number in eFaktura.nl, its status is verified automatically.
Why VAT Status Matters for Entrepreneurs
This is not just a formality. It is a legal condition that allows you to apply the 0% VAT rate or the reverse charge mechanism (Dutch: BTW verlegd) in intra-EU transactions.
Reverse Charge
Under the reverse charge mechanism, the buyer accounts for VAT instead of the seller. This applies, for example, to services provided to customers in other EU countries.
The conditions are clear: the customer must have an active VAT number, and all formal requirements must be met.
Read more about the reverse charge mechanism in the construction industry in the Netherlands HERE.
Example: You provide IT services to a company in Germany and apply the reverse charge mechanism. During a tax audit, it turns out that the customer’s VAT number was inactive on the day the invoice was issued. The tax authorities may require you to pay the outstanding VAT plus interest.
0% VAT Rate for Goods
You may apply the 0% VAT rate to intra-Community supplies of goods — for example, from the Netherlands to Germany. Here as well, the buyer’s VAT number must be active at the time of issuing the invoice.
Example: You sell machinery to a German company and issue an invoice with 0% VAT. Later, it turns out that the buyer’s VAT number was inactive. The tax authorities may challenge the transaction and demand VAT payment.
Proof of VAT Verification
More and more tax authorities — including the Dutch Belastingdienst — require documentation confirming that VAT verification was performed.
As the invoice issuer, you are responsible for the correctness of the invoice. You are also responsible if the data is outdated.
The European Commission clearly recommends keeping proof of validation. On its official website, it states: “We recommend that you keep the validation result in case of a tax audit.”
Read more about VAT in the Netherlands HERE.
eFaktura.nl’s Response to Stricter VAT Requirements
As the first invoicing system in the Netherlands, Belgium, and Germany, eFaktura.nl introduced fully automated VAT verification — per invoice.
When you issue an invoice:
- the system connects to the VIES database and automatically checks the customer’s VAT number,
- the verification result is saved with the exact date and time,
- you can download an official PDF confirmation document.
You do not need to take any additional action to remain compliant with stricter regulations. By simply issuing the invoice, the application automatically meets the additional VAT requirements for you.
A More Digital Reality for Entrepreneurs
Running a business is becoming increasingly automated and digital — including tax obligations. Across the European Union, tax administrations are introducing new control systems and increasing documentation requirements.
In this environment, choosing the right technological tools is essential. The right system not only keeps up with regulatory changes but anticipates them. It reduces risk and relieves you of administrative burdens.
eFaktura.nl continuously develops intelligent automation features. This allows you to focus on growing your business while strengthening your tax compliance and security.
