European Union – Intra-community delivery of goods, provision of services: verification of the customer’s VAT number
European Union – Intra-community delivery, provision of services of goods : verification of the customer’s VAT number
VAT-exempt intra-community deliveries of goods, reverse charge mechanism for taxable services in another Member State according to the general rule, find out how to verify your customers’ VAT numbers.
VAT-exempt intra-community deliveries of goods
A VAT-exempt intra-community delivery refers to the delivery (sale) of goods dispatched or transported by the seller, the buyer, or on their behalf, to another Member State of the European Union, to a taxable person or a non-taxable legal person acting as such (Article 138.1 of Directive 2006/112/EC).
As a reminder, stock transfers by a company to another country within the European Union are treated as intra-community deliveries (Article 17 of Directive 2006/112/EC) and are therefore subject to the same reporting obligations!
These intra-community deliveries and assimilated deliveries are exempt from VAT provided that four conditions are cumulatively met:
– The goods must leave French territory, destined for another Member State (be cautious with transport proof!). For more information, consult our dedicated blog on this topic here.
– The goods must be dispatched or transported by the seller, the buyer, or on their behalf (beware of chain transactions!).
– The buyer must have a valid VAT number in the European Union, issued by a Member State other than the Member State of departure of the transport (pay attention to VAT number verification steps – the subject of this blog!).
– The seller must report the sale in a VAT recapitulative statement (be cautious of late or incomplete filings!).
If these conditions are met, the seller is able to invoice their taxable customer without VAT.
Services taxable in another Member State according to the general rule (B2B)
For transactions between taxable persons (B2B), most services follow the general rule of taxation in the country where the customer has established their place of business or their fixed establishment to which the services are provided (Article 44 of Directive 2006/112/EC), except for services that are taxable elsewhere under a specific rule.
The following services are subject to a specific rule:
For transactions between taxable persons (B2B), most services follow the general rule of taxation in the country where the customer has established their place of business or their fixed establishment to which the services are provided (Article 44 of Directive 2006/112/EC), except for services that are taxable elsewhere under a specific rule.
| Service Description | B2B Place of Taxation |
| Restaurant and catering services | Place where the services are physically performed |
| Restaurant and catering services on board ships/aircraft/trains | Place of departure of passenger transport |
| Short-term rental of a means of transport (possession or continuous use for a period not exceeding 30 days – 90 days in the case of maritime transport) | Place where the means of transport is effectively made available to the customer |
| Passenger transport | Place where the transport takes place based on the distances covered |
| Access to cultural, artistic, sporting, scientific, educational, entertainment or similar events, including services provided by organizers of such events and ancillary services to these activities; (access = granting of a right of entry in exchange for a ticket or a fee) Evolution 2025: exclusion of events involving virtual attendance | Place where these activities are physically carried out |
| Services related to immovable property | Place where the immovable property is located |
Other services that do not fall under a specific rule are taxable in the customer’s country according to the general rule. This notably includes services such as legal or tax advice, IT services, goods transportation, rental of means of transport for more than 30 days, advertising services, provision of personnel, rental of tangible movable property, exploitation of intellectual property rights, organization of research and development, etc.
For these services, which are taxable abroad under the general rule, VAT is due by the taxable customer under the reverse charge mechanism if the service provider is not established in the same country (Article 196 of Directive 2006/112/EC).
When these conditions are met and provided the appropriate VAT number verifications have been carried out, the French service provider is able to invoice their taxable customer without VAT if the customer is established outside of France.
Secure your intra-community deliveries of goods and services by verifying the customer’s VAT number
To verify your customer’s VAT number, you need to log in to the VIES platform here.
Then, you must enter the following information:
– The Member State of the customer
– The customer’s VAT number
– Your own Member State
– Your VAT number (this last piece of information allows your VAT control authority to gather statistics on the VAT number verifications your company carries out for its customers)
Next, click on ‘verify.’
If the VAT number is valid, the message ‘Yes, valid VAT number’ will appear.
You must then verify the customer’s name and address. This verification is mandatory for service provisions and necessary for intra-community deliveries of goods.
If the VAT number is valid and the information matches (company name and address), you must record the proof of VAT number verification and keep this evidence in your records.
Conversely, if the VAT number is not valid or the information does not match, the exemption regime for intra-community deliveries or the reverse charge mechanism for services under the general rule is called into question.
In the case of an invalid VAT number, you cannot validly consider your customer as a taxable person. It is the customer’s responsibility to take the necessary actions with their tax administration to resolve the issue.
If there is a discrepancy in the address, you must carry out an additional verification step with your customer to justify the consistency of the addresses used and keep a record of these verifications.
Regarding services taxable at the place of the customer under the general rule, Implementing Regulation 282/2011 provides the procedure to follow if the customer is in the process of VAT registration at the time they receive the services. Unfortunately, similar measures do not exist for intra-community deliveries of goods.
Consequence of an invalid or unverified VAT number on the VAT regime
If the seller is able to provide proof of the verification of the customer’s valid VAT number with matching information (name and address), then the seller can issue an invoice without VAT for an intra-community delivery or a service provision under the general rule to a taxable person established in the European Union.
Otherwise, conversely, the sale will be subject to VAT.
Warning – if you take the risk of invoicing without VAT without being certain that you can prove the validity of the VAT number and the corresponding information in case of a tax audit, you expose yourself to a reassessment of VAT on the taxable amount as well as penalties and late payment interest.
Discover our services
VAT Solutions offers a range of services to assist you with your VAT-related challenges in France and internationally:
– Diagnostic of your VAT organization, your flows, and the methods for preserving proof of exempt operations, as well as assessing the impact of new VAT rules;
– Confirmation of the VAT treatment of your flows;
– Coaching/training;
– Management of VAT obligations in Luxembourg and abroad: assistance, preparation, and submission of VAT identification requests and VAT returns.
Contact us
Phone number: + 33 6 12 37 32 22
Email: info.fr@vat-solutions.com
For more content, check out our LinkedIn page here.
Discover our services
VAT Solutions offers a range of services to assist you with your VAT-related challenges in France and internationally:
– Diagnostic of your VAT organization, your flows, and the methods for preserving proof of exempt operations, as well as assessing the impact of new VAT rules;
– Confirmation of the VAT treatment of your flows;
– Coaching/training;
– Management of VAT obligations in Luxembourg and abroad: assistance, preparation, and submission of VAT identification requests and VAT returns.
Contact us
Phone number: + 33 6 12 37 32 22
Email: info.fr@vat-solutions.com
For more content, check out our LinkedIn page here.
