{"id":45661,"date":"2026-02-19T17:49:08","date_gmt":"2026-02-19T16:49:08","guid":{"rendered":"https:\/\/efaktura.nl\/?p=45661"},"modified":"2026-02-20T08:47:05","modified_gmt":"2026-02-20T07:47:05","slug":"the-importance-of-a-business-vat-status","status":"publish","type":"post","link":"https:\/\/efaktura.nl\/en\/the-importance-of-a-business-vat-status\/","title":{"rendered":"The Importance of a Business VAT Status"},"content":{"rendered":"\n

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.<\/strong><\/p>\n\n\n\n

Importantly \u2014 and this is not widely known \u2014 the tax authorities may request proof that you verified this number at the exact moment the invoice was issued.<\/strong><\/p>\n\n\n\n

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.<\/p>\n\n\n\n

\n

That is why eFaktura.nl introduced automatic VAT number verification of the invoice recipient at the moment of issuing the invoice<\/strong>. You do not need to remember additional steps or copy any data \u2014 the application does it for you.<\/p>\n<\/blockquote>\n\n\n\n

New Restrictions on VAT Verification<\/h2>\n\n\n\n

Since 2025, many EU countries \u2014 including the Netherlands, Belgium, and Germany \u2014 have tightened enforcement of VAT number verification in intra-EU transactions.<\/p>\n\n\n\n

Although the obligation already existed, tax authorities may now require proof that the verification was performed exactly at the time the invoice was issued. <\/strong>This change is linked to preparations for the EU VAT reform (ViDA) <\/a><\/strong>and the growing focus on digital VAT control.<\/p>\n\n\n\n

The Role of the VIES Database<\/h2>\n\n\n\n

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.<\/p>\n\n\n\n

If a VAT number appears as \u201cactive,\u201d you can be confident that the customer is a legitimate VAT taxpayer in another Member State.<\/p>\n\n\n\n

\n

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.<\/p>\n<\/blockquote>\n\n\n\n

Why VAT Status Matters for Entrepreneurs<\/h2>\n\n\n\n

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<\/em>) in intra-EU transactions.<\/p>\n\n\n\n

Reverse Charge<\/h3>\n\n\n\n

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.<\/p>\n\n\n\n

The conditions are clear: the customer must have an active VAT number, and all formal requirements must be met. <\/p>\n\n\n\n

Read more about the reverse charge mechanism in the construction industry in the Netherlands HERE.<\/a><\/p>\n\n\n\n

Example:<\/strong> 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\u2019s VAT number was inactive on the day the invoice was issued. The tax authorities may require you to pay the outstanding VAT plus interest.<\/p>\n\n\n\n

0% VAT Rate for Goods<\/h3>\n\n\n\n

You may apply the 0% VAT rate to intra-Community supplies of goods \u2014 for example, from the Netherlands to Germany. Here as well, the buyer\u2019s VAT number must be active at the time of issuing the invoice.<\/p>\n\n\n\n

Example:<\/strong> You sell machinery to a German company and issue an invoice with 0% VAT. Later, it turns out that the buyer\u2019s VAT number was inactive. The tax authorities may challenge the transaction and demand VAT payment.<\/p>\n\n\n\n

Proof of VAT Verification<\/h2>\n\n\n\n

More and more tax authorities \u2014 including the Dutch Belastingdienst \u2014 require documentation confirming that VAT verification was performed.<\/p>\n\n\n\n

As the invoice issuer, you are responsible for the correctness of the invoice. You are also responsible if the data is outdated.<\/p>\n\n\n\n

The European Commission clearly recommends keeping proof of validation. On its official website, it states: \u201cWe recommend that you keep the validation result in case of a tax audit.\u201d<\/strong><\/p>\n\n\n\n

Read more about VAT in the Netherlands HERE.<\/a><\/p>\n\n\n\n

eFaktura.nl\u2019s Response to Stricter VAT Requirements<\/h2>\n\n\n\n

As the first invoicing system in the Netherlands, Belgium, and Germany, eFaktura.nl introduced fully automated VAT verification \u2014 per invoice.<\/p>\n\n\n\n

When you issue an invoice:<\/p>\n\n\n\n