What Is The Vies

VAT Information Exchange System (VIES)

What is the VIES?

The VIES is a system that allows tax authorities in the European Union (EU) to exchange information on intra-Community transactions for value added tax (VAT) purposes.

How does the VIES work?

When a taxable person makes an intra-Community supply, they must provide the VAT number of the customer to their tax authority. The tax authority then checks the validity of the VAT number using the VIES system.

If the VAT number is valid, the tax authority will issue a VIES certificate. This certificate can be used to prove that the customer is registered for VAT in the EU.

What are the benefits of using the VIES?

The VIES system provides a number of benefits, including:

• It helps to reduce VAT fraud.
• It makes it easier for businesses to trade within the EU.
• It helps to ensure that businesses are paying the correct amount of VAT.