As a business owner in Europe, VAT compliance is likely on your mind. It can be a complex and time-consuming process, but VIES is here to simplify things. VIES, or VAT Information Exchange System, is a system created by the European Union to facilitate the exchange of information on Value Added Tax (VAT) between member states.
As a small team or a solopreneur you must have faced immense worry during audits about additional expenses in terms of penalties or taxes not paid. Most of the worry comes from incorrectly identifying business customers ( B2B ) from consumers ( B2C).
While working for a large fintech company building products, we noticed more and more companies wanting to shift from manually validating VAT numbers of their customers to automating this process via APIs. What exactly is driving this trend?
Every business use many data sets to verify and stay compliant with the regulations in the regions where they sell. They rely on multiple products in the process of generating an invoice . This includes many steps starting from business identity verification to location verification and tax compliance. The complexity increases multiple folds if they sell in multiple countries.