What is VIES and How It Works?

With the introduction of the single market on 1 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 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. Therefore any taxable person making such supplies must be able to check quickly and easily that their customers in another Member State are taxable persons and do hold a valid VAT identification number. For that purpose, inter alia, each tax administration maintains an electronic database containing the VAT registration data of its traders. Such information includes the VAT identification number, the trader's name, the trader's address.

A computerized VAT Information Exchange System (V.I.E.S.) was set up to allow for the flow of the data held across the internal frontiers which:
  • - Enables companies to obtain rapidly confirmation of the VAT numbers of their trading partners
  • - Enables VAT administrations to monitor and control the flow of intra-Community trade to detect all kinds of irregularities

The unit responsible for the control of intra-Community trade in each Member State , the Central Liaison Office (CLO), has a direct access through VIES to the VAT registration database of the other Member States.

SNI​ ​VIES​ solution is an SAP Add-on​ helps you to verify the validity of VAT number​s​ online.

Its easy to install the solution on SAP by an external transport where its configurable according to business needs. The verification of VAT number can be done on-demand or automatically depending on the business transactions such as “before invoice posting/issue”
SNI-VIES is integrated with the European commission database and able you to verify any VAT number online directly from SAP.