VAT Verification

How to check a VAT number

VAT verification can be checked on the EU database of VAT numbers on the web pages of European Commission.

Why is VAT verification important

If you have a potential new business partner in EU you can check the validity of their VAT registration. EU database called VIES is free and quick. If the VAT number is not valid, the tax documents related to the company are invalid.

The problem may arrise at VAT control later, when Tax administration finds out the incorrect VAT number. It may be possible that Tax authority makes you report and pay VAT even though it could be VAT free (if the VAT number would be correct).

Therefore a valid VAT number must be stated in all purchase and sell invoices.

VAT Verification in the Czech Republic

You can use not only the EU database but also the databases of the Ministry of the Interior of the Czech Republic. Czech database contain more specific data.

Czech databases can also show if the business partner has a reliable or unreliable VAT profile. If it is the latter, then you are liable to taking over responsibility for paying VAT, if it is not paid by the business partner.

Bank accounts of companies which are primarily used for business purposes are shown in the Czech database. If the bank account is not mentioned there you may be liable to take over the payment of VAT if your payments were made to different bank accounts to  those shown in the database.

Czech Tax authority database to check if the business partner is VAT reliable can be found here.

Let us know if you need any VAT advise.