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 varies from country to country and, in domestic cases, often from state to state. In addition to geographical VAT differences, the type of product a customer purchases, as well as item cost, can often be significant. In this blog, we’ll compare two prominent VAT APIs – vatlayer vs VAT API – from which businesses and developers can greatly benefit.
Table of Contents
What is vatlayer?
Vatlayer is a popular tool designed to streamline VAT compliance. It provides automated VAT number validation, rate retrieval, and currency conversion functionalities. Aimed at businesses of all sizes, vatlayer is particularly favored for its ease of integration and comprehensive API capabilities, which include support for multiple programming languages and detailed documentation.
How Up-to-date is the Data Returned by the vatlayer API?
Vatlayer instantly verifies EU VAT numbers in 0.50 seconds in real time, which helps make sure that a business is real before doing business with them. By only doing business with verified companies, this function makes sure that businesses follow VAT rules.
Where Does the API’s VAT Data Come From?
Vatlayer prioritizes providing you with the most accurate and responsive data possible. To achieve this, vatlayer API leverages a robust infrastructure with multiple servers and a unique “fallback and validation” system. This system incorporates a vast network of data sources, including those from the European Commission.
In the rare instance (less than 0.1% of the time) where one source might not provide a perfectly accurate response, our system seamlessly redirects the request to the next most reliable source. This ensures consistent service and API performance, meeting the high standards our customers expect.
Does the vatlayer API Provide Data for the Entire European Union?
The service lets users get VAT rates for any of the 28 EU member states that are currently in place. Businesses that need to charge the right amount of VAT in different countries will find this function very helpful.
What are “Standard” and “Reduced” Rates in vatlayer?
The standard VAT rate (20%) applies to the vast majority of circulating products, while the reduced VAT rate applies to the specific goods predefined by the country. Users can see both the standard VAT rates for EU countries and the reduced rates that apply to certain types of things, like medical supplies. It is important for companies that sell things and services that qualify for these cheaper rates to do this.
What is VAT API?
Okay, next on our vatlayer vs VAT API blog, let’s take a look at VAT API. It offers a robust set of features that focus on validating VAT numbers and retrieving up-to-date VAT rates from member countries within the European Union. It is designed for developers and businesses that need a straightforward, reliable solution for integrating VAT compliance into their existing systems without extensive setup.
VAT API Convention
- All responses are in JSON format.
- JSON numbers are bound to a signed 32-bit integer.
- Query parameters and JSON fields use lowercase, with underscores separating words.
- The status of the HTTP response indicates whether the request has succeeded or failed. For convenience, the status code is included in each JSON response.
- If a request is successful the JSON message field defaults to the string ‘success’ otherwise the message will be descriptive of what may have have caused the error.
VAT API Response Codes
- 200: Your request was granted, and everything went as planned.
- 201: Something new, like a new record or resource, was made because of your request.
- 400: There could be blanks, bad formatting, or something else that isn’t quite right. Make sure you’ve filled out all the needed areas and that your info is in the right order.
- 403: It looks like you don’t have the right permissions to get to what you want. You should use a good API key and make sure the settings are right.
- 404: No such file or directory was found. We couldn’t discover what you were looking for. The information you asked for might not exist, or we might not be able to show it to you. Make sure that what you’re asking for really exists.
- 429: Too many requests! You asked for too many things too quickly. You could try spacing them out or checking your plan’s limits to see how many requests you can make in a minute. It’s also possible that you’re asking for the same thing more than once by chance.
- 500: We were unable to fulfill your request because of an unexpected event on our end. This problem usually only lasts a short time, but please let our support team know if it keeps happening.
Comparative Features of vatlayer vs VAT API
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 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 and Reliability
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.
Between vatlayer vs VAT API, 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 the European Commission’s databases.
On the other hand, 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, we find that vatlayer is more reliable.
Ease of Use: Which API Offers Better Integration?
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 Features: Protecting Sensitive Financial Information
Security is a major concern when it comes to financial apps. Typically, financial information is confidential, and information breaches can 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.
Geographical Coverage: EU and Beyond
Vatlayer offers VAT rates and VAT number validation for all current EU member states. On the other hand, VAT API offers VAT rates for EU member states as well as the UK. And it also validates VAT numbers for all EU member states.
Pricing Models and Plans: A Comparative Overview
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 $107.99 yearly for 1,000 API Requests
Professional Plan — USD 29.99 /mo or pay $314.99 yearly for 4,000 API Requests
Enterprise Plan — USD 99.99 / mo or pay $1019.99 yearly for 20,000 API Requests
VAT API offers several pricing plans for vatlayer vs VAT API. But there aren’t any unlimited time or free plans like vatlayer. However, it does offer a one-month free trial on a 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.
Comprehensive Documentation for Developers
The quality of documentation can make or break your API implementation. In this instance, both vatlayer vs VAT API provide well-organized code samples and detailed instructions. vatlayer, however, provides more in-depth information, especially when it comes to getting started. More importantly, VAT API provides a detailed error code table, whereas VAT API does not.
In addition, vatlayer allows you to try out the API features as you go through their documentation. VAT API also lets you test the API functionality, but you have to be a Postman user to do so.
Additional Functionalities and Tools
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 that instantly provides you with the information you need regarding your query.
- Four endpoints: Simple VAT number validation, the VAT rate for a 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 and Recommendations
| Features | Vatlayer | VAT API |
| 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 |
| Response Format | JSON | JSON |
| 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 |
| Currency Conversion | No | Yes |
| Type-specific Reduced VAT rates Integration | Yes | No |
Vatlayer vs VAT API – Pros and Cons
Vatlayer
Pros
- High level of data accuracy
- Easy to use
- 256-bit HTTPS encryption
- Free plan
- Type-specific Reduced VAT rates Integration
Cons
- The free plan doesn’t include HTTPS encryption
- Limited tech support for free plan
- Doesn’t offer currency conversion
VAT API
Pros
- 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
Cons
- No free plan
- Doesn’t offer HTTPS encryption
- API functionality testing is available only for Postman users
Which API Should I Use to Calculate VAT Rates?
When it comes to vatlayer vs VAT API, vatlayer by apilayer has the edge over VAT API as it provides a higher level of data accuracy, offers HTTPS encryption and a free plan, and has many other useful features. Want to learn more? Click here to get access to our extensive documentation.
Conclusion: Making the Right Choice for Your Business
Choosing between vatlayer vs VAT API depends largely on your specific business needs, size, and the complexity of VAT management required. Vatlayer offers a comprehensive suite suitable for larger, globally active businesses, while VAT API provides straightforward, reliable VAT management ideal for smaller businesses focusing on the EU.
FAQs
What is the VAT number verification API?
Businesses can check VAT numbers in real time with the VAT number verification API to ensure they are legal and listed with the right tax officials.
This check is very important for businesses that deal within the EU because it helps to make sure that business partners are real and that VAT rules are followed for transactions that happen across borders.
The API usually links to government systems like the VIES (VAT Information Exchange System) in the EU and, for businesses in the UK after Brexit, HMRC’s “Check a VAT Number” service.
How much is VAT in Germany in 2024?
Starting in 2024, Germany’s normal VAT rate will be 19%. Germany also has lower tax rates of 7% on some things and services that are seen as necessary, like food, books, and public transportation. These tax rates are part of Germany’s plan to boost economic growth and social welfare by taxing basic goods less.
Who has the highest VAT in Europe?
Hungary’s 27% normal VAT rate is the highest in Europe, according to the most recent data. Hungary’s general economic policy relies heavily on indirect taxes like VAT to pay for government spending, and this high rate is part of that policy.
Which country has the lowest VAT in Europe?
Luxembourg has the lowest normal VAT rate in Europe, at 17%. Luxembourg’s VAT policy is meant to be competitive within the EU, which helps make the country a good place to do business and shop.
