With the “quick fixes” coming into force as part of the new VAT system directive of the EU Commission, the tax exemption of deliveries within the EU has been subject to much more stringent requirements since January 2020. Only deliveries where both partners have a valid value added tax identification number (VAT ID no.) are exempt from the value added tax. The qualified query of the VAT ID no from customers outside the EU, but also the correct identification of deliveries in the “summary declaration” are therefore becoming much more important. However, the VAT ID no. cannot be checked for validity nor for affiliation with a customer in the SAP standard.
This is where the SPEEDI solution “VAT ID no. check” comes in. It expands the SAP standard without modification to include the possibility to determine the validity of a VAT ID number in the portal of the Federal Central Tax Office (FCTO) or in the VIES search engine of the EU Commission. In the Federal Central Tax Office portal, the SPEEDI solution can also be used to perform a qualified VAT ID no. query and to request a written “official confirmation.” The corresponding settings are easily made at the click of a mouse - conveniently and completely integrated in the SAP software (SAP ERP or SAP S/4HANA).
A validity check can be carried out both for the individual VAT ID no as well as for the creditor and debtor master data of SAP ERP or for the numbers stored in the central SAP-S/4HANA business partners.
The result of such a dialog-based and qualified check, including an address verification with the FCTO, is clearly visualized on a monitor. Traffic light features indicate whether the query information (VAT ID no., company name, country, city, zip code, street) coincides with the SAP master data. A red traffic light indicates an error with the VAT ID no and/or other information so that the processor can immediately initiate the necessary measures and investigate and correct the information.
If an individual order or an SD scheduling agreement is processed, a special SPEEDI routine checks the correctness of the VAT ID no. of the customer. SPEEDI automatically sets a delivery block if the information is invalid or faulty.
The SPEEDI solution is continuously developed and improved according to the requirements of the new regulations for VAT inspection via quick fixes. For example, the plan is to define contact partners who will be immediately informed via email in the event of a negative VAT ID no. check and who will track the process. In the near future, it should also be possible to check the VAT ID no. in the VIES search engine when a sales document is created or saved and to set a delivery block directly in the document if the number is invalid. In addition, another SPEEDI monitor is to ensure an even simpler analysis of inspection results.
Would you like to learn more about the solution SPEEDI VAT ID Number Check? We look forward to advising you. Please feel free to call or e-mail us.