EU VAT
EU member states each set their own VAT rate, and B2B sales between member states are typically reverse-charged rather than taxed at the seller’s rate once the buyer’s VAT number is confirmed valid. This page covers how Solvimon applies EU VAT and validates VAT numbers against VIES.
Why this matters
Charging EU VAT correctly depends on two things: which member state the customer is in, and whether their VAT number is valid so the sale can be reverse-charged instead of taxed at your local rate. Getting either wrong means charging VAT you shouldn’t, or failing to charge VAT you should.
How it works
- Solvimon determines whether EU VAT applies based on the billing entity’s and customer’s countries, together with the tax category set on the product, product item, or product category.
- With no tax calculation integration connected, Solvimon applies its native EU VAT rate for the customer’s member state.
- If a tax calculation integration is connected for the billing entity, the customer’s country, VAT ID, and exemption status are sent to the provider instead, which returns the applicable rate and any reverse-charge treatment.
- Reverse charge applies differently depending on the transaction: outside the EU, between EU member states, and between the EU and Great Britain each follow different rules. Solvimon prints a note explaining which applies on the invoice; see Tax Notes.
EU member states
VIES validation and native EU VAT rates apply to customers registered in one of the 27 EU member states:
GB) left the EU VAT area; sales between the EU and Great Britain use the EU–GB reverse charge rules referenced above, not the intra-EU ones.Validating a VAT number via VIES
Before saving a customer’s VAT number, validate it against VIES, the EU’s VAT Information Exchange System, using POST /v1/customers/validate-tax-id. The result is VALID, NOT_VALID, or UNKNOWN (VIES unreachable, or the number’s country doesn’t support automated lookup). See validating a customer’s VAT number for the full request and response.
NL or DE), not necessarily the customer’s registered address country. A customer registered in one member state can still hold a VAT number issued by another.Edge cases
- A VAT number that fails VIES validation doesn’t block invoicing; validation is a check you run before saving it, not an invoicing gate.
- Solvimon’s tax categories (
STANDARD,NO_TAX,EXEMPT) don’t encode a country’s reduced or super-reduced VAT rates on their own. For product lines that need a reduced rate in some member states and the standard rate in others, connect a tax calculation integration so the provider’s jurisdiction-specific rate tables apply.