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Next.js server action for VAT validation

Use Next.js 14 Server Actions to validate EU VAT numbers server-side in a React form. No API route needed — validation runs securely on the server with full TypeScript types.

Implementation steps

1. 1

   Create Server Action for VAT validation

   Define an async function in a file with 'use server' at the top (or inline with the directive). The function signature should be: async function validateVAT(country: string, vat: string): Promise<VATResult>. Inside, call fetch(`https://api.taxid.pro/v1/validate/${country}/${vat}`, { headers: { Authorization: `Bearer ${process.env.TAXID_API_KEY}` }, next: { revalidate: 3600 } }) and return the typed response. The next.revalidate option enables Next.js data cache for repeated lookups.

2. 2

   Add optimistic UI with useTransition

   In your client component, call const [isPending, startTransition] = useTransition() and wrap the Server Action call in startTransition(() => { validateVAT(country, vat).then(setResult) }). Set isPending to true immediately while the transition is in flight, which triggers your loading indicator without blocking the rest of the page. This pattern is idiomatic Next.js 14 and avoids the complexity of manual loading state management.

3. 3

   Display company name confirmation

   When the Server Action resolves with status: 'active', update component state with the result and render the company_name from the VATResult in a highlighted confirmation block. For status: 'invalid', show an inline validation error adjacent to the VAT input field. For status: 'service_unavailable', display a non-blocking warning ('VAT verification is temporarily unavailable — your number will be validated shortly') and allow the form to proceed so users are not blocked by a VIES outage.

4. 4

   Handle pending and error states

   Use isPending from useTransition to show a spinner on the submit button and disable the VAT input during validation, preventing double-submissions. Wrap the startTransition call in a try/catch to handle network errors and surface them as a user-facing error state rather than a silent failure. For the error state, distinguish between a TaxID API error (HTTP 4xx/5xx) and a VIES service_unavailable response (HTTP 200 with status: 'service_unavailable') — they require different UX responses.

Code example

const res = await fetch(
  'http://localhost:3000/api/v1/validate/DE/DE123456789',
  { headers: { 'Authorization': 'Bearer YOUR_API_KEY' } }
);
const { valid, status, company_name, company_address } = await res.json();

if (valid) {
  console.log(`Valid EU business: ${company_name}`);
} else if (status === 'service_unavailable') {
  // VIES is temporarily down — retry or allow with manual check
  console.log('VIES unavailable — check back in a few minutes');
} else {
  console.log('Invalid VAT number — charge local tax rate');
}

import requests

res = requests.get(
    "http://localhost:3000/api/v1/validate/DE/DE123456789",
    headers={"Authorization": "Bearer YOUR_API_KEY"}
)
data = res.json()

if data["valid"]:
    print(f"Valid: {data['company_name']}")
elif data["status"] == "service_unavailable":
    print("VIES temporarily unavailable")
else:
    print("Invalid VAT number")

API response

The TaxID API returns a consistent JSON response for every validation request:

{
  "valid": true,
  "status": "active",
  "country_code": "DE",
  "vat_number": "123456789",
  "company_name": "Example GmbH",
  "company_address": "Musterstraße 1, 10115 Berlin",
  "request_date": "2026-05-10T00:00:00.000Z",
  "cached": false,
  "request_id": "req_01j..."
}

Error handling

The API uses a consistent Stripe-style error format. Always handle service_unavailable separately — VIES has occasional downtime and you should not reject valid customers during outages.

Evaluating EU VAT APIs? Compare TaxID vs Vatstack, Vatlayer, Avalara →

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