Validation of the VAT identification numbers
Due to VAT fraud, the individual countries of the EU lose billions of euros every year.
A suitable way to counteract this fraud is the legal requirement to check the foreign VAT identification number (VAT ID) for VAT-exempt, intra-Community trade in goods and services in the EU.
Fulfilment of this audit obligation is also a component of the audit fields in a tax audit in accordance with the principles of orderly accounting.
This “due diligence obligation of a prudent businessman” is deemed not to have been fulfilled if the corresponding VAT identification number is not checked in advance for each individual invoice.
Electronic confirmation procedure
A so-called electronic confirmation procedure has therefore been introduced throughout the EU. Individual EU states oblige resident businesses to send their confirmation requests to national offices. Other states rely on the EU’s VAT Information Exchange System (VIES).
Duty to audit
If the VAT registration number of the tax-exempt recipient of the service subsequently turns out to be incorrect or if the obligation to check was neglected, there is a risk that the VAT liability will be transferred to the supplying company. This can be determined, for example, in the course of a tax audit.
In individual cases, the entire bookkeeping may be rejected.
The successful validation of a VAT registration number must be documented individually for each receipt in accordance with the VAT Act and the Implementing Regulation.
SOFTWARE SOLUTION FULLY INTEGRATED IN SAP
With the GATE: VAT-ID you can fulfil all legal requirements within the framework of a fully automated solution
and create the prerequisite for an efficient relief of the employees in the secure validation of the VAT ID number directly in the SAP system: