What is tax ID validation?
Tax ID validation is checking that a customer's or supplier's tax identification number, such as a VAT number or US taxpayer identification number, is real, active and belongs to that business. Businesses validate tax IDs to apply the right VAT treatment, such as the reverse charge, and to file accurate information returns.
Also calledVAT number validationTIN matchingtax number verification
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- EU register
- VIES
- US service
- IRS TIN Matching
- Used for
- Reverse charge and 1099 accuracy
How tax ID validation works
In the EU, VIES, the VAT Information Exchange System run by the European Commission, confirms whether a VAT number is registered for cross-border trade within the EU; it does not return the name and address, though national systems may confirm whether given details match. A valid customer VAT number is the main evidence for treating a cross-border business sale as reverse charged. The UK government's VAT number check confirms whether a UK VAT number is valid and shows the registered name and address. In the US, payers that file information returns can use the IRS TIN Matching service to check a payee's name and taxpayer identification number before filing Forms 1099, reducing mismatch notices and backup withholding. Tax engines and supplier onboarding tools call these registers automatically at checkout, on invoice and when adding a supplier, and keep the response as evidence.
Common questions
What is VIES?+
The European Commission's VAT Information Exchange System, a search tool that checks with national tax authorities whether an EU VAT number is valid for cross-border transactions.
Why validate a customer's VAT number?+
To support charging no VAT under the reverse charge on cross-border business sales. If the number is invalid, the seller may have to charge local VAT or pay it itself.
What is IRS TIN Matching?+
An IRS service for payers that file information returns. It confirms whether a payee's name and taxpayer identification number match IRS records before Forms 1099 are filed.
Software that validates tax IDs
AvalaraSales tax and VAT automation with filing across 190 countries.Profile →
FonoaGlobal indirect tax determination and e-invoicing through one API.Profile →
AnrokSales tax automation built specifically for SaaS companies.Profile →
TipaltiGlobal payables with supplier onboarding, tax and mass payouts.Profile →Part of Accountio’s accounting technology coverage · Glossary
