EU VAT ID check. Setup and workflow

Transcription

1 EU VAT ID check Setup and workflow

2 This document explains how to set up validating EU VAT IDs using a web service. Audience This document is for administrators or key users who need information about the setup and the general functionality. What s new You can validate EU VAT IDs from the following BP functions in the Common data module: BPs (GESBPR) Customers (GESBPC) Prospects (GESBPP) Representatives (GESREP) Suppliers (GESBPS) Find out more You can find appropriate supplementary documentation and videos in the Online Help Center. EU VAT ID check Page 2 of 11

3 Contents Audience 2 What s new 2 Find out more 2 OVERVIEW 4 PREREQUISITES 5 PARAMETERS 6 EVCSERVICE Webservice for EU VAT ID check 6 EVCCOMPANY EU VAT ID source company 6 EVCCONFIRM EU VAT ID confirmation letter 6 INTERACTIVE VALIDATION 7 Manual EU VAT ID validation steps 7 Address management 8 REVALIDATE EU VAT IDS 9 EU VAT ID check Page 3 of 11

4 Overview In various European Union (EU) countries, such as Germany and Austria, fiscal authorities demand due diligence when issuing tax-exempt EU sales invoices to avoid tax fraud. To fulfill this due diligence, companies are required to check the identity of the business partner by validating the EU VAT ID. Validating the ID and its result must be recorded. In addition, fiscal authorities could require repeating this check periodically depending on the quality of the BP relation. The fiscal authorities typically provide various ways to validate an EU VAT ID: Manually by call center or by online form Automated by using a web service that requires integrating the web service with an ERP or accounting system and is available for Sage X3. There are two validation levels: Qualified validation: EU VAT ID, company name, and address are checked. All data must be valid. Unqualified or simple validation: Only the EU VAT ID is checked. Although using a web service is convenient, no single web service fulfills all local requirements: The EU provides a generic web service that provides an unqualified or simple validation of the EU VAT ID only. This level of validation does not meet German fiscal requirements. Germany and Austria each provide a web service that provides qualified validations, but it can only be used if the sender is a German or Austrian company. You can use different web services for EU VAT ID online validation. EU VAT ID check Page 4 of 11

5 Prerequisites The use of the EU VAT ID online validation requires the following prerequisites: Your company, the sender, must have a valid EU VAT ID. With every validation request, this ID is transmitted. Your Sage web server must be able to access the web service URL by internet. Check with your administrator if your Firewall/Proxy server configuration needs to be updated. EU VAT ID check Page 5 of 11

6 Parameters The following parameters control the how the EU VAT ID online check operates. All parameters can be found in Accounting (CPT) chapter, Tax management (VAT) group. Note: You can only define these parameters on the folder level. EVCSERVICE Webservice for EU VAT ID check To enable the online check, select the web service to use from the list of supported web services. If set to None, the EU VAT ID online check is disabled. EVCCOMPANY EU VAT ID source company Enter your company s EU VAT ID that should be used for all EU VAT ID validation requests. All web services require transmitting the EU VAT ID for the company making the request. The EU VAT ID provided here is used for all requests to the web service. Important: The German web service requires providing a German EU VAT ID for the request. For the EU web service, any EU VAT ID is sufficient. EVCCONFIRM EU VAT ID confirmation letter Set this parameter to Yes to request a confirmation letter if the EU VAT ID validation was successful. German fiscal authorities send a written letter by postal mail to the address belonging to your EU VAT ID. This parameter only applies to using the German web service for interactive validation requests, not for the revalidation function. Important: Use this parameter only in productive environments with an appropriate sender EU VAT ID. EU VAT ID check Page 6 of 11

7 Interactive validation You can perform an Interactive check from all BP-related functions in the Common data module except Leads, Factors, and Service suppliers. Manual EU VAT ID validation steps From the BP screens, you can manually validate an EU VAT ID by clicking the Validation icon. A message box displays the validation results. The exact content varies by check result and web service used. If the validation was successful, you receive a confirmation message and the Validation check box is selected. For an unsuccessful validation, you receive a message that displays the reason for the failed validation. If no full validation could be performed (for example, if only the VAT ID was validated and not the address), you have the option to accept the results as valid or not. If you select Yes, the Validation check box is selected. If you accept the result, the EU VAT ID is marked as Validated. EU VAT ID check Page 7 of 11

8 Successful validation results are stored in a table. If a previously validated VAT ID is modified, the Validation check box is cleared. Address management Results of the checks are recorded with the originating address code. For the main EU VAT ID, the standard address of the company is used. You can perform checks for EU VAT IDs assigned to ship-to addresses in the Customer management function (GESBPC). EU VAT ID check Page 8 of 11

9 Revalidate EU VAT IDs Use the EU VAT ID revalidation function (EVCBAT) to periodically revalidate EU VAT IDs. You can revalidate for all BPs or a selection and you have the option to generate a log file of the results. This function checks online for all previously validated EU VAT IDs so you can ensure that they are still valid. Navigation: Common data > BPs > Utilities EU VAT ID check Page 9 of 11

10 If an EU VAT IDs fails validation, (i.e., the ID has expired) an error is recorded in the log file. In addition, the validation status is set back to Not validated. Important: Revalidation only checks EU VAT IDs that have been manually checked successfully. From the perspective of due diligence, you should check EU VAT IDs at the time of their first entry to be sure they are valid before used in an invoice. EU VAT ID check Page 10 of 11

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