What is VatZen?

VatZen offers different services for VAT compliance, such as instant EU VAT number validation, VAT compliant price calculations and VAT rates for all 28 current member states of the European Union. Our system is secure and built for large scale to be ready to support any business' needs.

Why do I need VatZen?

Since January 1st, 2015, EU laws require you to charge VAT on private customers irrespective of where your business is located, inside or outside the EU. The VAT amount depends on the customer’s location. Business customers with a valid VAT number are exempt from being surcharged. Our API helps you in different ways: you can get the official EU VAT rates, perform VAT number checks, generate VAT compliant invoices and more.

What are digital products?

As we mentioned above, you are required to add VAT to the price of the digital good, so what does the digital good mean? The European Commission calls them electronically supplied services and defines them as “services which are delivered over the Internet or an electronic network and the nature of which renders their supply essentially automated and involving minimal human intervention, and impossible to ensure in the absence of information technology.”

Let us give you a few examples of digital products:

• E-books, when you purchase if online, for example via Amazon of subscription service such a Scribd.
• Media, such as movies, music and publications that are delivered as digital files or streaming services..
• Cloud-based software, All these falls into the category: Software-as-a-Service (SaaS), Platform-as-a-Service (PaaS), and Infrastructure-as-a-Service (IaaS).
• Downloadable and streaming music, when you purchase downloadable MP3 or use a service like Spotify.
• Websites, site hosting services, and internet service providers.

Should I charge VAT on my digital products?

VAT amount depends on where your customer is located. Any business that sell to European consumers must apply, collect, and submit VAT against all customer invoices. A VAT-registered business is exempt under a reverse-charge scheme, but you are responsible for validating their VAT number. You can use VatZen to geolocate your customer and get the proper VAT Rate and the validate business VAT number if provided by your customer.

Is it required to issue an invoice?

Yes, EU regulations state that you are required to issue an invoice either electronically or on paper everytime you sell goods, render services, or receive payment on account. Using VatZen, you can generate VAT-complient invoices using our API.

Is it required to check a customer’s VAT number?

Yes, it is required when you sell to business in EU. Every quarter, businesses have to submit a recapitulative statement to their tax administration. The customer (i.e. their VAT number) stated in your recapitulative statement must be correct.

Using VatZen you can check whether the VAT number provided by your customer is registered in the relevant national database. The valid VAT number of your customer should be mentioned on your invoice.

Where does the API's VAT data come from?

Here at VatZen, we aim to provide the highest possible level of data accuracy and response speed possible. We're requesting data from official EU services and trying different mechanisms in order to get the result as fast as possible.