Taxmarc™ can automatically check the VAT numbers when a VAT number is added to the customer master data. A real-time link to VIES is made to validate the entered VAT number.
The client can choose to treat the result of the VIES validation as:
- An “error”: it is not possible to enter invalid VAT numbers in the customer master data or
- A “warning”: invalid VAT numbers can be entered but are reported separately: signaling to check with the customer and/or correct. This is relevant as in practice the root cause could also be that the VIES database is temporarily not accessible (e.g. due to maintenance). It is therefore important to periodically check the validity of the VAT numbers.
VAT numbers can expire or change due to changes in the legal structure of customers. It is therefore, again, important to periodically check the validity of the VAT numbers.
With Taxmarc™ it is possible to periodically run the validation of VAT numbers report as detective control within the Tax Control Framework and as part of master data cleansing/maintenance. This can be done in a fully automated process with a scheduled batch job (for example last Sunday of the month) that validates all VAT numbers in customer master data.