---
title: "VAT on Payhawk invoices for Administrators - Payhawk Help Center"
slug: "vat-number-verification-for-eu-companies-in-payhawk"
description: "Find out why Payhawk charges VAT on invoices, how a VAT number verified in EU VIES avoids it, and how to request a credit note or refund for misapplied VAT."
updated: 2026-10-23T07:47:48Z
published: 2026-10-23T07:47:48Z
canonical: "payhawk.com/vat-number-verification-for-eu-companies-in-payhawk"
---

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

# Charging VAT on Payhawk invoices

Under the [EU One-Stop Shop (OSS) rules](https://vat-one-stop-shop.ec.europa.eu/index_en), VAT must be charged on SaaS services provided to EU customers who are not registered for VAT. This ensures compliance with EU tax regulations.

If a valid VAT registration is not on file or cannot be verified via the [EU VIES (VAT Information Exchange System) system](https://ec.europa.eu/taxation_customs/vies/#/vat-validation), VAT is applied based on the customer’s country of residence. EU VIES is an online tool used to validate VAT registration numbers of businesses registered in the European Union.

## Reasons for charging VAT

- No valid VAT registration on file - If your company has not provided a valid VAT/CIF number that can be verified via the EU VIES system, VAT will be applied to your invoices.
- Inactive VAT registration - If your VAT number is not active in the EU VIES system, the supplier is required to charge local VAT.
- Special cases - For businesses in regions like the Canary Islands, which are outside the EU VAT territory, VAT may still be charged if no verifiable VAT registration is provided. A national tax ID (NIF) alone is insufficient to prove VAT exemption.

## Ensuring VAT exemption

To avoid VAT charges on future invoices, do any of the following:

- Provide a valid VAT registration - Submit a VAT registration certificate that can be validated via the [EU VIES](https://ec.europa.eu/taxation_customs/vies/#/vat-validation) system. This ensures your tax status is recognized and VAT is not applied.
- For businesses in the Canary Islands, provide official tax documentation supporting VAT non-applicability under export/extraterritorial rules.
- Validate your VAT status - Ensure your VAT number is active and correctly registered in the EU VIES system. If your VAT number is inactive, work with your local tax authority to resolve the issue.
- Update your account tax settings - Contact Payhawk Support via chat or at [support@payhawk.com](mailto:support@payhawk.com) to update your account with the correct VAT information. This will prevent VAT from being applied to future invoices.

## Correcting misapplied VAT charges

If VAT was charged incorrectly on an invoice, you can request a correction in the following way:

1. Provide proof of VAT registration - Submit official documentation, such as a VAT registration certificate or equivalent proof, to validate your VAT status.
2. Request a credit note - Contact Payhawk’s billing team to issue a credit note (invoice reversal) and a corrected invoice without VAT.
3. Request a refund - Once your VAT status is validated, request a refund for any VAT that was misapplied.

## Special considerations for the Canary Islands

The Canary Islands are outside the EU VAT territory, and businesses based there are typically VAT-exempt. However, to ensure VAT exemption:

- Provide a valid VAT registration that can be verified via the EU VIES system. A standard NIF is not sufficient.
- If you are not VAT-registered, submit official tax documentation that supports VAT non-applicability under export/extraterritorial rules.

## VAT number verification for EU companies in Payhawk

As part of the company registration process in Payhawk, EU companies must provide a valid VAT number. This is used for invoicing, proper tax reporting, and enabling VAT reclaim or reverse charge mechanisms where applicable.

A valid VAT number is one that can be successfully verified through the [European Commission's VIES system](https://ec.europa.eu/taxation_customs/vies/#/vat-validation). Your company's VAT number must be successfully verified in the European Commission's VIES system to appear on Payhawk invoices.

In some EU countries, such as [Spain](https://administracion.gob.es/pag_Home/en/Tu-espacio-europeo/derechos-obligaciones/empresas/impuestos/IVA/registro-pago.html), the VAT number may share the same format as the local tax identification number (TIN). However, for Payhawk, it is only valid if it is registered and verified in VIES.