Common VAT Number Errors in VIES: KvK Advises Entrepreneurs on Correct Usage

• The Dutch Chamber of Commerce (KvK) notes that many sole proprietors receive an error message (‘invalid VAT number for cross-border transactions within the EU’) in the VAT Information Exchange System (VIES).
• KvK clarifies that the VAT identification number should be used in the VIES system, not the turnover tax number.
• When the correct VAT identification number is used, the system responds positively with ‘yes, valid VAT number’.
• In VIES, entrepreneurs check VAT numbers of other companies and their own.
• Entrepreneurs sometimes mistakenly use the turnover tax number instead of the VAT identification number.
• Sole proprietors receive two numbers from the Tax Authorities: a VAT identification number and a turnover tax number.
• The turnover tax number is only for contact with the Tax Authorities, such as for tax returns, and is based on the citizen service number (BSN).
• The VAT identification number is unique for all business forms, including sole proprietors and freelancers, and is not linked to the BSN.
• The VAT identification number is used for contact with customers and suppliers in the Netherlands and the EU, and appears on the entrepreneur’s website and invoices.

Source: taxlive.nl

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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