Determining this is very important because it will tell whether you charge VAT or not. Ask the customer to give their VAT registration number. If the customer cannot—as businesses must have one—you can assume it is an individual. If the customer proves to be a business, ask for their VAT registration in order to confirm that it is a valid business. Some customers might actually pretend to be a business so as to avoid paying taxes! The best idea is to double-check a number using a tool available from the European Commission in order to validate it.??
