VIES VAT number check: protecting cross-border car sales
VIES VAT number check for car dealers: why it is a condition for VAT-free EU sales, how to check and save proof, and red flags in buyer details.
· 6 min read
A VIES VAT number check confirms, in real time, whether a buyer's VAT number is valid for cross-border trade in the EU. For car dealers it is essential: since 2020 a valid VAT number indicated by the buyer is a legal condition for selling a VAT-qualifying car without VAT to another member state. Enter your own VAT number as requester and keep the consultation number as proof.
Why a VIES check matters for VAT-free car sales
A VIES check matters because Article 138(1)(b) of the VAT Directive allows the intra-community exemption only where the buyer is identified for VAT in another member state and has indicated that number to you. If the number is invalid, the condition fails, and in an audit you can be asked to pay the VAT yourself.
On a VAT-qualifying car sold for €25,000 net, the stake is the VAT at your rate: €4,750 in Germany at 19%, €5,250 in the Netherlands or Belgium at 21%, €5,750 in Poland at 23%. That is often more than the dealer's whole margin on the car.
VIES itself exists because Article 31 of Council Regulation 904/2010 obliges member states to let traders confirm electronically the validity of a VAT number, and the associated name and address, for intra-community supplies.
VIES VAT number check: how to check an EU VAT number
Checking takes less than a minute on the European Commission's VIES website or through its free web service. Follow these steps:
- Select the member state that issued the number. Northern Ireland numbers have their own entry, "XI".
- Type the number as one continuous string in capital letters, without spaces or dots. Austrian numbers start with "U" after the country code (ATU…).
- Enter your own VAT number in the requester field.
- Submit and read the reply: "valid" or "invalid", plus the name and address where the member state allows them to be displayed.
- Save the reply with the consultation number.
The check runs against the national database of the member state that issued the number; there is no central EU register. If that national system is temporarily unavailable, try again later and do not release the car VAT-free until you have a valid reply.
For car dealers
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Request accessWhat does the consultation number prove?
The consultation number proves that you checked a given VAT number at a given time and obtained a given reply. VIES issues it only if you enter your own VAT number as requester. The Commission's own guidance advises keeping it in your archives to show the tax administration.
The same guidance adds an important limit: a valid VAT number is only one of the elements of evidence supporting the exemption. You still need proof of transport and a correct EC sales list entry; see intra-community supply of cars.
In Germany, dealers can also ask the Federal Central Tax Office (BZSt) to confirm the validity of a foreign VAT number together with the name and address, under § 18e UStG. This "qualified" confirmation is useful when VIES shows no name.
What to do if VIES shows the number as invalid
If the number is shown as invalid, first check the details with your customer: country prefix, number of characters, typing errors. If it is still invalid, the customer must contact his own tax administration, because only national authorities can update VIES data. Some member states record a business in VIES only after a separate registration for intra-EU trade.
Until the number is valid:
- invoice with your domestic VAT and, where your national rules allow, correct the invoice to net once the number is valid and the transport proof is complete, or
- take a deposit equal to the VAT and refund it after a valid check on the date of supply, or
- postpone the delivery.
Never zero-rate first and check later. The relevant moment is the supply, so check again on the day the car leaves if the first check was days earlier.
How to store the VIES confirmation
Store the VIES reply in the deal file for each car, not in a general folder. A good routine:
| What to keep | Why |
|---|---|
| PDF or print of the VIES reply with date, time and consultation number | Proof of the check |
| The name and address shown, compared with the invoice | Detects identity mismatches |
| A second check on the delivery date | The supply date is decisive |
| A note of who carried out the check | Internal control |
Keep the file as long as your national law requires for invoices and tax records; under Article 247 of the VAT Directive each member state sets that period.
Red flags in buyer details
A valid VAT number does not prove that the buyer is genuine. Missing-trader fraud often uses real, recently issued numbers. Look for these warning signs:
- the name in VIES differs from the name on the order or the payment;
- the company was registered very recently and has no trading history in cars;
- payment comes from a third party or from a private account;
- the buyer insists on collecting with his own driver and offers no CMR;
- the delivery address is in a different country from the VAT number;
- contact only through a mobile number and a free e-mail address;
- pressure to invoice a VAT-qualifying car as margin, or the reverse.
None of these proves fraud on its own, but together they mean you should ask for more evidence or decline the deal. Our article on VAT carousel fraud in the car trade explains how such chains work.
Retroactive cancellation of a VAT number
Sometimes a buyer's VAT number is cancelled after the sale with retroactive effect. The Court of Justice held in Mecsek-Gabona (C-273/11) that the exemption cannot be refused solely for that reason, provided the supplier acted in good faith and took every reasonable step. Your VIES consultation number from the date of supply is the best evidence that you did.
Combine it with strong proof of intra-community delivery, and the VAT risk on a cross-border sale becomes small. MyCarDealer helps on the other side of the deal, showing whether a car you buy abroad leaves a margin in your country after VAT; you can test it with the free valuation.
Frequently asked questions
How do I check an EU VAT number in VIES?
Open the European Commission's VIES service, select the issuing member state (or "XI" for Northern Ireland), type the number without spaces and enter your own VAT number as requester. The reply shows whether the number is valid and gives a consultation number.
Why does a VIES check matter for VAT-free car sales?
Because a valid VAT number of the buyer is a legal condition for the intra-community exemption under Article 138(1)(b) of the VAT Directive. Without it, the tax office can charge you VAT on the sale.
What should I do if VIES shows the number as invalid?
Check the number with the customer and ask him to contact his tax administration, which alone can update VIES. Until the number is valid, charge domestic VAT, hold a VAT deposit or postpone delivery.
How should the VIES confirmation be stored?
Save the reply with date, time and consultation number in the file for that car, together with the invoice and transport documents. Repeat the check on the day of delivery if the first one was earlier.
Does a valid VIES result protect me against fraud?
Only partly. It proves the number was valid, but fraudulent buyers often use real numbers. You still need proof of transport, payment from the buyer's business account and a plausible buyer profile.