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Validation process of VAT numbers in SAP | Tax Management Consultancy http://richardcornelisse.

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RICHARD CORNELISSE

Tax Management Consultancy
0% RATE, AUTOMATED PROCESS, CONTROL, CUSTOMER MASTER DATA, DATA ANALYSIS, DETECTIVE CONTROL, EROOR, EUROPEAN COMMISSION, EUROPEAN UNION, FORMAT, GST, INDIRECT TAX, INVALID, KEY GROUP, MASTER DATA, MATERIAL, MEASURE, NATIVE SAP, ONLINE DATABASE, PROCESS, RISK TOLERANCE, RISKS, ROBBERT HOOGEVEEN, SAP, SAP AG, SYNTAX, TAX CONTROL FRAMEWORK, TAXMARC™, VALID, VALIDATION, VALUE-ADDED TAX, VAT, VAT FRAUD, VAT INFORMATION EXCHANGE SYSTEM, VAT NUMBERS, VIES, WARNING

Validation process of VAT numbers in SAP
In Audit Defense, Business Strategy, EU development, Indirect Tax Strategic Plan, Processes and Controls, Technology, VAT planning on 07/02/2013 at 8:09 pm

By Robbert Hoogeveen (http://www.linkedin.com/profile /view?id=13942200&locale=en_US&trk=tyah), CFO of the KEY Group (http://www.key-group.nl/en/home/) and Director Technology of Taxmarc™ (http://taxnewsreader.files.wordpress.com/2012/10 /robbert_linkedin.jpg)
An important control measure in terms of material indirect tax risks is checking whether the 0% rate is correctly being applied. A prerequisite for the application of the 0% rate for cross-border transactions within the European Union is a valid VAT number of the client. The valid VAT number must also be mentioned on the invoice. Adequate monitoring of this is crucial to eliminating risks as much as possible.

Validation of VAT numbers

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04-03-2013 20:27

777 35 816 77 percent 1 percent 22 percent Records 9. From a VAT perspective this implies material risks that exceed every risk tolerance (0 percent. However. 2 of 3 04-03-2013 20:27 . The KEY Group checked the VAT numbers through a data analysis for a client: Description Total in customer master Without VAT number Unique BE VAT numbers Validation in VIES: Valid VAT number Incorrect format Invalid number 2. it appears that 5 to 25 percent of the VAT numbers is incorrect or invalid. client acceptance with regard to preventing VAT fraud). The list could be used to check the VAT number with the customer..com/2013/02/07/validation-process-of-vat-num.. In native SAP is it possible to check the syntax – the format of the VAT number. A real time link to VIES is made to validate the entered VAT number.972 These could also be ‘bill to/payer’ or ‘ship to customers’ Only Belgium VAT numbers are validated. Comments 3.194 2. VAT Information Exchange System (VIES) for the validation of VAT numbers. In practice. Taxmarc™’s solution for validation of VAT numbers in SAP Taxmarc™ can automatically check the VAT numbers when a VAT number is added to the customer master data.Validation process of VAT numbers in SAP | Tax Management Consultancy http://richardcornelisse. the European Commission has provided an online database. it is not possible to check whether the VAT number is valid. 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. including the number of positions. To this end.628 The number of erroneous VAT numbers is close to 25%. Standard SAP does not have an interface with the VIES database.

. This can be done in a fully automated process. VAT numbers can expire or change due to changes in the legal structure of customers. 3 of 3 04-03-2013 20:27 . It is therefore important to periodically check the validity of the VAT numbers.Validation process of VAT numbers in SAP | Tax Management Consultancy http://richardcornelisse. In Taxmarc™ it is also possible to periodically carry out these controls as detective controls within the Tax Control Framework. ▶ No Responses Blog at WordPress.com. Theme: Customized DePo Masthead by AutomaĴic..com/2013/02/07/validation-process-of-vat-num.