For businesses providing goods or services to an international customer base, calculating legally correct VAT rates can be a bit complicated. This is because the VAT percentage owed vary from country to country, and in domestic cases, often from state to state. In addition to geographical VAT differences, often the type of product a customer purchases, as well as item cost, can are often significant.
That is why, for many businesses, especially those online with customers all over the world, a VAT calculation API comes in handy remaining compliant with the many different tax laws that affect their sales and their bottom line.
In this blog, we’ll compare two prominent VAT APIs — vatlayer and Vat API, that businesses and developers can greatly benefit from.
vatlayer and Vat API VAT Rates and VAT Number Validation
Both vatlayer and Vat API share a number of basic features, including access to VAT Rates and VAT Number Validation.
vatlayer instantly validates VAT numbers and obtains company information. The API returns all current EU member states’ VAT rates as well as rates for a specific EU member state’s VAT rates by country code or IP address. It also allows you to integrate type-specific reduced VAT rates.
Similarly, VAT API allows you to check the VAT rates of all the EU member states. This is is in addition to the VAT rate of a specific country. VAT API also validates VAT numbers of EU member states in real-time by connecting directly to the European Commission VIES service.
VAT Data Accuracy
Especially where finances are concerned tax rate accuracy is important. Even minor discrepancies in VAT rates can add up to cost a company a significant amount of money.
You can trust vatlayer to provide the most accurate and up-to-date EU VAT rates, number validation, and company data as it collects data from reliable sources, including European Commission’s databases.
On the other hand, vat VAT API uses Amazon servers and the Amazon API Gateway service to provide accurate API metrics. However, when we compare the data accuracy of vatlayer and VAT API, vatlayer is more reliable.
Ease of Use
Ease of use is also a key factor in determining which API is most suitable for your use case. In this case ease of use includes both how easily an API can be integrated by a developer as well as how easy it is for the end-user to employ and interpret.
With Valtlayer, you can make a request with an easy-to-understand URL structure, and it delivers API results in portable and lightweight JSON format, which makes them easy to read and interpret.
VAT API also provides responses in JSON format, making them easy to read.
Security is a major concern when it comes to financial apps. Typically, financial information is confidential and information breaches could be costly.
Vatlayer connects to the API through 256-bit HTTPS encryption, which is an industry-standard and one of the most secure encryption methods. So you can trust it to provide secure and encrypted data streams.
In contrast, VAT API uses Amazon servers and the Amazon API Gateway service to provide data security.
Vatlayer offers VAT rates and VAT number validation for all current EU member states. On the other hand, VAT API offer VAT rates for EU member states as well as the UK. And it also validates VAT numbers for all EU member states.
Vatlayer offers various pricing plans, including a free plan. In addition to the free plan offering a wide range of features, you can use it for an unlimited amount of time. The one disadvantage of the free plan, however, is that it doesn’t include HTTPS encryption. If you want a higher request volume and HTTPS encryption, you can choose from vatlayer’s paid pricing plans. The enterprise plan can perform as many as 20,000 API requests per month.
Free Plan — 100 API Requests
Basic Plan — USD 9.99 /mo or pay $95.90 yearly 1,000 API Requests
Professional Plan — USD 29.99 /mo or pay $287.90 yearly 4,000 API Requests
Enterprise Plan — USD 99.99 / mo or pay $959.90 yearly 20,000 API Requests
When it comes to the pricing of VAT API, it also offers several pricing plans. But, there isn’t any unlimited time, free plan like vatlayer. However, it does offer a one-month free trial on Tier 1 subscription plan.
VAT API offers 5 pricing tiers with prices almost identical to those of vatlayer. VAT API also offers more API calls with its paid tiers offering between 5000 at tier one and 50,000 calls at tier 5.
The quality of documentation can make or break your API implementation. In this instance, both vatlayer and VAT API provide well-organized code samples and detailed instructions. vat layer however provides more in-depth information, especially when it comes to getting started. More importantly, vat API provides a detailed error code table where VAT API does not.
In addition, vatlayer allows you to try out the features of API as you go through their Documentation. VAT API also lets you test the API functionality, but you have to be a user of Postman to do so.
Vatlayer comes with many other features as well that a business would need in a VAT calculation API:
- Performs VAT compliant price calculation
- Allows you to Prettyprint your JSON response
- Vatlayer has a highly experienced tech team, which instantly gives you the right information that you need regarding your query
- Four endpoints; Simple VAT number validation, the VAT rate for single EU member state, VAT rates for all EU member states, and Price calculation
When it comes to the features of VAT API, it also offers several other useful features that businesses need:
- Offers VAT invoicing which also lets you make invoices for more than one trading name
- Currency conversion
- Two endpoints; Global and EU
Vatlayer Vs VAT API Overall Comparison
|VAT Number Validation||Yes||Yes|
|EU VAT Rates||Yes||Yes|
|VAT Compliant Price Calculation||Yes||Yes|
|Data security||256-bit HTTPS encryption||Amazon API Gateway service|
|Countries||All current EU member states||All current EU member states and the UK|
|Features Testing||Yes||Only if you’re a user of Postman|
|Free Pricing Plan||Yes (unlimited)||No (one-month Free trial available)|
|Single Country VAT Rates||Yes||Yes|
|Type-specific Reduced VAT rates Integration||Yes||No|
Vatlayer Vs VAT API Pros and Cons
- High level of data accuracy
- Easy to use
- 256-bit HTTPS encryption
- Free plan
- Type-specific Reduced VAT rates Integration
- Free plan doesn’t include HTTPS encryption
- Limited tech support for free plan
- Doesn’t offer currency conversion
- Supports VIES service
- Easy to use
- Provides VAT rate for all current EU member states as well as the UK
- Offers Currency conversion
- VAT invoicing for multiple trading names
- No free plan
- Doesn’t offer HTTPS encryption
- API functionality testing available only for Postman users
Which API should I use to calculator VAT rates?
Vatlayer has the edge over VAT API as it provides a higher level of data accuracy, offers HTTPS encryption and a free plan along with many other useful features.