VAT and Intra-Community Supply within the EU
0% VAT for Businesses with an EU VAT Number
As a business with a valid VAT number and a registered office outside the Netherlands, you can make tax-free purchases at Toolnation with 0% VAT. This is possible under the regulations for intra-Community supplies, in accordance with Council Directive 2006/112/EC (VAT Directive) and its implementation in Dutch tax legislation.
Each transaction is verified in the VIES (VAT Information Exchange System) of the European Commission, allowing the 0% VAT rate to be applied to VAT-registered businesses located in another EU country.
Conditions for Applying the 0% VAT Rate
- Your VAT number must be registered in an EU country other than the Netherlands.
- The transaction must meet the conditions for intra-Community supply. This means the goods must be physically transported to another EU country outside the Netherlands.
- A VAT-registered company in Sweden, for example, cannot place an order under the name of a company registered in Sweden and have the goods delivered to Denmark.
- The billing address and the delivery address must be in the same country where the company is registered.
Business purchase at 0% VAT rate (with account):
- Create a customer account at Toolnation.
- Enter your name, company name, and the address associated with your VAT number.
- Click "Validate" to check your details in the VIES system.
- After successful verification, you can make purchases without VAT being charged.
Business purchase at 0% VAT rate (without account):
- Add the desired products to your shopping cart.
- Click "Proceed to Checkout" or "View and Edit Cart."
- Under "Shipping Address," enter your full company details and EU VAT number.
- Click "Validate" to check your details in the VIES system.
- Select your preferred shipping and payment method.
- After successful validation of your VAT number, VAT will not be charged. You will see this immediately in the "Order Summary" section.
- Finally, click "Place Order" to proceed with your selected payment method. After payment, you will receive an email confirmation with your order number.
Important note:
If you place an order without an account, it will not be possible to link previous orders to a newly created account or view your order history later.
How to Check the Validity of Your VAT Number?
Before making a purchase, check whether your VAT number is valid and active in the VIES system: > Check VAT Number in VIES
- Your VAT number must match your company’s name and address as registered in the tax system.
- The format of VAT numbers varies by country, so ensure your number is correctly formatted before verification.
Example Formats of VAT Numbers:
- Sweden (SE): SE999999999901 (12 digits)
- Denmark (DK): DK99999999 (8 digits)
- Finland (FI): FI99999999 (8 digits)
- Ireland (IE): IE9S99999L (1–2 digits + 5 digits + 1 letter)
A complete list of VAT number formats for all EU countries can be found in the official documentation: > EU VAT Number Document
What to Do if Your VAT Number Is Not Accepted?
If the system does not accept your VAT number, it may be due to the following reasons:
- The number was entered incorrectly.
- The number has expired or has not yet been activated in the VIES system.
- The company is not registered as a VAT-liable entity within the EU.
- Temporary malfunction or maintenance work at VIES.
Possible Solutions:
- Verify your VAT number using the VIES system and your national tax authority.
- Ensure your VAT registration is correctly recorded with your national tax authority.
- Contact your national tax authority if your VAT number is incorrect or inactive.
- Reach out to our customer service for assistance.
- Review the European Commission’s VIES system FAQ for detailed information on VAT number validation and EU cross-border VAT regulations.
- The VIES system may be temporarily unavailable due to maintenance or technical issues. If your VAT number is correct but has not been verified, please try again later.
Important Information:
- VAT paid at checkout cannot be refunded after purchase. Ensure that your VAT number is correct and active before completing the transaction.