VIES explained: VAT number checks and VIES returns VIES Guide for Irish businesses

What is VIES?

VIES stands for the VAT Information Exchange System. It is an electronic system established by the European Union to exchange VAT registration and transaction information between Member States’ tax administrations. The system helps verify VAT numbers of businesses in other EU countries and underpins the zero‑rating of intra‑EU supplies of goods and services between VAT‑registered traders.

At its core, VIES enables:

• Verification of EU VAT numbers in real time by querying national VAT databases; and
• Exchange and monitoring of intra‑EU trade data among Member States’ tax authorities.

Why does VIES matter?

If you sell goods or services to a VAT-registered business in another EU Member State, you can usually invoice at 0% VAT (zero-rate) if you meet the conditions.

Revenue sets out the key conditions for zero-rating (in summary):

• Your customer is VAT-registered in another Member State and you obtain and keep their intra-EU VAT number.
• Your invoice shows both VAT numbers (yours and theirs).
• For goods, you must be able to prove the goods were dispatched/transported out of Ireland to another Member State (commercial evidence like transport docs, delivery dockets, etc.).
• You file the required VIES Statement with the relevant details.

If you can’t meet the conditions, Revenue’s position is that Irish VAT should be charged at the appropriate rate.

Who must file a VIES Statement?

If you are intra-EU VAT registered in Ireland and you make zero-rated supplies of goods and/or services to VAT-registered customers in other Member States, you must file VIES statements.

There is no threshold: if you have qualifying supplies in a period, a VIES statement must be filed regardless of value.

Also note:

• VIES statements are separate from VAT3 returns. You need to continue filing VAT3 Returns.
• Even if you haven’t been reminded by Revenue, the onus is on the trader to file correctly.

Domestic VAT number vs intra-EU VAT number

Revenue operates a two-tier approach for new VAT registrations:

• Domestic-only VAT registration - no intra-EU trade; no VIES statements, VAT number cannot be validated on VIES.
• Intra-EU VAT registration - allows intra-EU acquisitions/supplies and brings VIES reporting obligations. VAT number can be verified on VIES.

If you originally registered as domestic-only and later start trading with EU businesses, you may need to apply for intra-EU VAT registration. See our guidance note on Irish VAT vs Intra-EU VAT Registration to learn more.

Filing frequency: monthly or quarterly?

In Ireland:

• Goods: monthly required if intra-EU goods exceed €50,000 in a quarter; otherwise quarterly.
• Services: suppliers may opt to file monthly or quarterly.
  

If you make no qualifying supplies in a period, you must file a Nil VIES statement for that period.

Deadlines:

• Generally, returns are due by the 23rd day of the month following the reporting period. For example, if the reporting period is the quarter from 1 January to 31 March, the returns are due to be filed by 23 April.
• Even periods with no qualifying trade require a nil VIES return.

How to validate a VAT number (practical steps)

You will need the following information in order to check the validity of a customer's VAT number:

1. The customer's country of VAT issuance
2. The VAT number

You can validate VAT numbers for your EU customers directly in MyIncorpro. When creating or viewing your customer, you can verify that their VAT number is valid. If Incorpro files your VIES statement, we use the stored VAT number details to support that filing.

To learn more about this service, see our Ongoing Accounting services.

Penalties for Non‑Compliance

Failure to validate VAT numbers appropriately or to submit accurate and timely VIES statements can attract penalties from the Revenue Commissioners. For example, penalties of up to €4,000 are typically associated with failure to submit required VIES returns when due.

Important: Revenue checks the VAT numbers you submit on VIES statements. If a VAT number fails validation and you don’t correct it, Revenue notes it can nullify a claim to zero-rating.

Summary

The VIES regime is a cornerstone of intra‑EU VAT compliance. It empowers Irish businesses and tax authorities to:

• Verify cross‑border VAT registration status;
• Support zero‑rating of intra‑EU B2B supplies; and
• Share and reconcile trade data across EU Member States.
  

Understanding and properly applying VIES procedures is essential for any Irish enterprise engaged in EU trade.

Further Guidance and Assistance

Our Guidance Articles are here to help you understand the many topics of the Corporate, and Accounting worlds. Even more information about various topics can be found on our FAQ Page, and the Library.

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Notes/disclaimer

This article is general guidance only and does not constitute tax advice. If you have complex transactions, get professional advice or contact Revenue.