EU B2B VAT Exemption Feature

The EU B2B VAT Exemption feature in CommBilling is designed to streamline VAT management for businesses operating within the European Union

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It automates the validation and application of VAT exemptions for qualifying B2B transactions, ensuring compliance with EU tax regulations while reducing manual effort.

What is the EU B2B VAT Exemption?

The EU B2B VAT exemption allows businesses to avoid charging VAT on transactions between companies located in different EU member states. To qualify, both the seller and buyer must have valid VAT registration numbers, and the transaction must involve the supply of goods or services across borders.

How CommBilling Handles VAT Exemption

CommBilling simplifies the process with the following functionalities:

  1. Automatic VAT Validation

    • CommBilling validates the VAT numbers of your B2B customers in real-time through the EU’s VIES (VAT Information Exchange System).
  2. Seamless Invoice Generation

    • For exempt transactions, the system generates invoices with a clear note indicating that the sale is exempt from VAT under EU B2B regulations.

    • The VAT amount is omitted, and the invoice remains compliant with EU requirements.
  3. Error Notifications

    • If a VAT number is invalid or missing, CommBilling notifies you immediately, allowing you to correct the information before completing the transaction.

Benefits of the EU B2B VAT Exemption Feature

  1. Compliance: Ensures adherence to EU VAT regulations, reducing the risk of penalties or errors.

  2. Automation: Eliminates the need for manual validation, saving time and minimizing errors.

  3. Transparency: Provides clear documentation of VAT-exempt transactions for both you and your customers.

  4. Efficiency: Simplifies cross-border transactions, making it easier to manage your EU-based B2B operations.


The EU B2B VAT Exemption feature in CommBilling is a powerful tool for businesses operating within the EU. By automating VAT validation, applying exemptions seamlessly, and providing clear reporting, it ensures compliance and reduces administrative burdens.