VIES
In Latvian: VIES
VIES (VAT Information Exchange System) is the EU system that connects the member states’ VAT registers. Businesses use it on the European Commission’s website to check whether a partner’s VAT number from another EU country is valid.
The check answers “yes” or “no” on validity, and for some countries also shows the business name and address. The data comes from the member states’ databases, which the member states, not the European Commission, are responsible for keeping complete and accurate.
The Latvian VAT Law allows 0% on a supply of goods to another EU country only if the buyer gave a VAT number from another member state that was valid at the time of the transaction. So the number is checked before invoicing, and it is worth keeping the result with the transaction documents.
Tax administrations also use VIES to exchange the data on EU transactions that businesses report, in Latvia in the PVN 2 report.
Example
Before issuing a 0% invoice to a Polish client, SIA “Ozols” selects “PL” on the VIES website, enters the client’s VAT number and gets confirmation that it is valid. It keeps the dated result with the invoice.
Legal basis
- European Commission: VIES taxation-customs.ec.europa.eu
- VIES VAT number check ec.europa.eu
- Value Added Tax Law, Section 43(4) likumi.lv
This explanation is for information and does not replace tax or legal advice. The law in its current consolidated text prevails.