> ## Documentation Index
> Fetch the complete documentation index at: https://vatextract.com/docs/llms.txt
> Use this file to discover all available pages before exploring further.

# VAT Validation

> Automatic EU and UK VAT number verification

VATextract automatically validates supplier VAT numbers against official EU VIES and UK HMRC databases.

## How It Works

<Steps>
  <Step title="Extraction">
    When an invoice is processed, the supplier's VAT/Tax ID is extracted.
  </Step>

  <Step title="Validation">
    The VAT number is checked against the appropriate government database (EU VIES or UK HMRC).
  </Step>

  <Step title="Matching">
    The registered company name and address are compared with the invoice data.
  </Step>
</Steps>

## Validation Statuses

| Status      | Description                                |
| ----------- | ------------------------------------------ |
| `VALID`     | VAT number is registered and active        |
| `INVALID`   | VAT number not found or inactive           |
| `PENDING`   | Validation in progress                     |
| `NOT_FOUND` | No VAT number detected on invoice          |
| `ERROR`     | Validation service temporarily unavailable |

## Match Quality

Beyond validating the VAT number, VATextract compares the registered company details with the invoice:

| Quality    | Description                                   |
| ---------- | --------------------------------------------- |
| `EXACT`    | Company name matches the VAT registry exactly |
| `CLOSE`    | Minor differences (e.g., "Ltd" vs "Limited")  |
| `NO_MATCH` | Significant discrepancy—may indicate fraud    |

<Warning>
  A `NO_MATCH` result doesn't necessarily indicate fraud. Company names on invoices often differ from official registry entries. Always review manually before rejecting.
</Warning>

## Supported Countries

### European Union (VIES)

All 27 EU member states including:

* Germany (DE), France (FR), Netherlands (NL)
* Spain (ES), Italy (IT), Poland (PL)
* And all other EU countries

### United Kingdom (HMRC)

* UK VAT numbers (GB prefix)

<Info>
  VAT validation happens asynchronously. Results typically arrive within 1-5 seconds of invoice processing.
</Info>

## Validation Response Data

Each validated VAT number includes:

```json theme={null}
{
  "vatValidationStatus": "VALID",
  "vatMatchQuality": "EXACT",
  "vatValidatedAt": "2024-01-15T10:30:00Z",
  "vatValidationData": {
    "vat_number": "DE123456789",
    "country_code": "DE",
    "company_name": "Example GmbH",
    "company_address": "Musterstraße 1, 10115 Berlin"
  }
}
```

## Best Practices

<CardGroup cols={2}>
  <Card title="Review Mismatches" icon="magnifying-glass">
    Investigate `NO_MATCH` results before processing payments
  </Card>

  <Card title="Revalidate Periodically" icon="arrows-rotate">
    VAT registrations can change—revalidate suppliers annually
  </Card>
</CardGroup>