diff --git a/app/Jobs/Client/CheckVat.php b/app/Jobs/Client/CheckVat.php
new file mode 100644
index 000000000000..49d5f17d2a37
--- /dev/null
+++ b/app/Jobs/Client/CheckVat.php
@@ -0,0 +1,65 @@
+<?php
+/**
+ * Invoice Ninja (https://invoiceninja.com).
+ *
+ * @link https://github.com/invoiceninja/invoiceninja source repository
+ *
+ * @copyright Copyright (c) 2023. Invoice Ninja LLC (https://invoiceninja.com)
+ *
+ * @license https://www.elastic.co/licensing/elastic-license
+ */
+
+namespace App\Jobs\Client;
+
+use App\Models\Client;
+use App\Models\Company;
+use App\Libraries\MultiDB;
+use Illuminate\Bus\Queueable;
+use App\DataProviders\USStates;
+use App\Utils\Traits\MakesHash;
+use App\Services\Tax\TaxService;
+use Illuminate\Queue\SerializesModels;
+use Illuminate\Queue\InteractsWithQueue;
+use Illuminate\Contracts\Queue\ShouldQueue;
+use Illuminate\Foundation\Bus\Dispatchable;
+use Illuminate\Queue\Middleware\WithoutOverlapping;
+
+class CheckVat implements ShouldQueue
+{
+    use Dispatchable;
+    use InteractsWithQueue;
+    use Queueable;
+    use SerializesModels;
+    use MakesHash;
+
+    public $tries = 1;
+
+    /**
+     * Create a new job instance.
+     *
+     * @param Client $client
+     * @param Company $company
+     */
+    public function __construct(public Client $client, protected Company $company)
+    {
+    }
+
+    /**
+     * Execute the job.
+     *
+     */
+    public function handle()
+    {
+        MultiDB::setDb($this->company->db);
+
+        $tax_service = new TaxService($this->client);
+        $tax_service->validateVat();
+
+    }
+
+    public function middleware()
+    {
+        return [new WithoutOverlapping($this->client->id)];
+    }
+
+}
diff --git a/app/Observers/ClientObserver.php b/app/Observers/ClientObserver.php
index 814ee7f0c421..4ab5d076e4a4 100644
--- a/app/Observers/ClientObserver.php
+++ b/app/Observers/ClientObserver.php
@@ -11,8 +11,10 @@
 
 namespace App\Observers;
 
+use App\Utils\Ninja;
 use App\Models\Client;
 use App\Models\Webhook;
+use App\Jobs\Client\CheckVat;
 use App\Jobs\Util\WebhookHandler;
 use App\Jobs\Client\UpdateTaxData;
 
@@ -20,6 +22,36 @@ class ClientObserver
 {
     public $afterCommit = true;
 
+    private $eu_country_codes = [
+        'AT' => '40', 
+        'BE' => '56', 
+        'BG' => '100', 
+        'CY' => '196', 
+        'CZ' => '203', 
+        'DE' => '276', 
+        'DK' => '208', 
+        'EE' => '233', 
+        'ES' => '724', 
+        'FI' => '246', 
+        'FR' => '250', 
+        'GR' => '300', 
+        'HR' => '191', 
+        'HU' => '348', 
+        'IE' => '372', 
+        'IT' => '380', 
+        'LT' => '440', 
+        'LU' => '442', 
+        'LV' => '428', 
+        'MT' => '470', 
+        'NL' => '528', 
+        'PL' => '616', 
+        'PT' => '620', 
+        'RO' => '642', 
+        'SE' => '752', 
+        'SI' => '705', 
+        'SK' => '703', 
+    ];
+
     /**
      * Handle the client "created" event.
      *
@@ -33,6 +65,10 @@ class ClientObserver
             UpdateTaxData::dispatch($client, $client->company);
         }
 
+        if(in_array($client->country_id, $this->eu_country_codes) && $client->company->calculate_taxes) {
+            CheckVat::dispatch($client, $client->company);
+        }
+
         $subscriptions = Webhook::where('company_id', $client->company_id)
                                     ->where('event_id', Webhook::EVENT_CREATE_CLIENT)
                                     ->exists();
@@ -50,11 +86,17 @@ class ClientObserver
      */
     public function updated(Client $client)
     {
-        if($client->getOriginal('postal_code') != $client->postal_code && $client->country_id == 840 && $client->company->calculate_taxes)
-        {
+
+        /** Monitor postal code changes for US based clients for tax calculations */
+        if(Ninja::isHosted() && $client->getOriginal('postal_code') != $client->postal_code && $client->country_id == 840 && $client->company->calculate_taxes) {
             UpdateTaxData::dispatch($client, $client->company);
         }
 
+        /** Monitor vat numbers for EU based clients for tax calculations */
+        if($client->getOriginal('vat_number') != $client->vat_number && in_array($client->country_id, $this->eu_country_codes) && $client->company->calculate_taxes) {
+            CheckVat::dispatch($client, $client->company);
+        }
+
         $event = Webhook::EVENT_UPDATE_CLIENT;
 
         if ($client->getOriginal('deleted_at') && !$client->deleted_at) {
diff --git a/app/Repositories/ClientRepository.php b/app/Repositories/ClientRepository.php
index 851dd83e7d06..ec324ef6934d 100644
--- a/app/Repositories/ClientRepository.php
+++ b/app/Repositories/ClientRepository.php
@@ -117,9 +117,12 @@ class ClientRepository extends BaseRepository
      */
     public function create($client): ?Client
     {
+        /** @var \App\Models\User $user */
+        $user = auth()->user();
+
         return $this->save(
             $client,
-            ClientFactory::create(auth()->user()->company()->id, auth()->user()->id)
+            ClientFactory::create($user->company()->id, $user->id)
         );
     }
 
diff --git a/app/Services/Tax/TaxService.php b/app/Services/Tax/TaxService.php
index 89dd1ba7c31c..02d1f2162352 100644
--- a/app/Services/Tax/TaxService.php
+++ b/app/Services/Tax/TaxService.php
@@ -26,10 +26,13 @@ class TaxService
 
         $vat_check = (new VatNumberCheck($this->client->vat_number, $client_country_code))->run();
 
-        $this->client->has_valid_vat_number = $vat_check->isValid();
-        $this->client->saveQuietly();
+        if($vat_check->isValid()) {
+            $this->client->has_valid_vat_number = true;
+            $this->client->saveQuietly();
+        }
 
         return $this;
+        
     }
 
     public function initTaxProvider()