Home / Glossary
EU VAT Glossary
Plain-language definitions of EU VAT and compliance terms — written for developers, not tax lawyers.
VIES (VAT Information Exchange System)
The EU Commission's official real-time system for validating VAT numbers across all 27 member states. It queries national tax databases and returns the registration status, company name, and address of any EU-registered business.
EU VAT Number
A unique identifier issued by a national EU tax authority to businesses registered for value added tax. It enables zero-rate treatment on cross-border B2B transactions and is the basis for all EU VAT compliance.
Reverse Charge VAT
A VAT accounting mechanism where the buyer — not the seller — accounts for VAT on a cross-border B2B supply. The seller invoices at zero-rate; the buyer self-assesses VAT in their own country. EU law requires VAT number validation before applying it.
B2B VAT Exemption
Zero-rate treatment applied to cross-border EU B2B supplies where the buyer holds a valid VAT number in a different member state. Not a true exemption — the transaction is still VAT-applicable; the buyer self-accounts via the reverse charge mechanism.
DAC7 (EU Directive 2021/514)
EU Council Directive 2021/514 requiring digital platform operators to collect, verify, and annually report seller income data and VAT numbers to national tax authorities. Applies to marketplaces and gig platforms with 30+ sellers or €2,000+ in facilitated transactions.
EORI Number
Economic Operators Registration and Identification number — a unique identifier for businesses engaged in customs activities within the EU. Required for importing or exporting physical goods across EU borders. Distinct from a VAT number and not validated via VIES.
EU OSS Registration
The EU One Stop Shop (OSS) scheme, introduced July 2021, allows businesses selling digital services to EU consumers (B2C) to register for VAT in one EU country and remit VAT for all EU consumer sales through a single return — eliminating the need for separate VAT registrations in each member state.
Intrastat
The EU system for collecting trade statistics on goods moved between EU member states. Required for businesses that trade physical goods above national thresholds. Does not apply to digital services or SaaS. Distinct from VAT reporting.
Validate EU VAT numbers via API
100 free validations/month. No credit card. REST/JSON.