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Setting Up the VAT ID Validation Service

This chapter contains all important information on setting up the validation service for the value-added tax identification number (VAT ID) in our ERP solution. When posting shipping documents, validating a customer's VAT ID via a third-party provider by using the VAT ID validation service is mandatory. You can also set up how the system should handle an invalid VAT ID. The chapter is divided into the following sections:

Activating the VAT ID Validation Service

To activate the VAT ID validation service, proceed as follows:

  • Use the quick search (ALT+Q) to find the EU VAT Registration No. Validation Service Setup page.
  • Enter the VAT ID validation service endpoint in the Service Endpoint field.
  • Activate the Enabled toggle switch.
  • A dialog window is displayed.
  • Read the General Terms & Conditions.
  • Accept the General Terms & Conditions.
  • Another dialog window is displayed.
  • Read the Disclaimer.
  • Confirm the dialog window with OK.
  • In the Default Template Code field, select a default template for validating additional company information.
  • Your entries are saved automatically.

You have successfully activated the VAT ID validation service.

Setting Up the Handling of Invalid VAT IDs

To set up how to handle an invalid VAT ID, proceed as follows:

  • Use the quick search (ALT+Q) to find the VAT Business Posting Groups page.
  • For each VAT business posting group, select in the VAT ID Validation Option field how the system should behave if validation fails according to the following table:
Option System Behavior with Active VAT ID Validation Service
Posting Blocked Postings are not possible if validation fails. The following dialog window is displayed: The selected business partner does not have a valid VAT ID.
Posting Allowed with Hint The following dialog window is displayed if validation fails: The selected business partner does not have a valid VAT ID. Upon confirmation, another dialog window is displayed: The Value Added Tax Act requires a valid VAT ID for intra-Community transactions. Do you want to continue even though your VAT ID is invalid? If you confirm this message with Yes, the posting can still be processed. If you reject this message with No, posting is not possible.
Posting Allowed The following dialog window is displayed: The Value Added Tax Act requires a valid VAT ID for intra-Community transactions. Please correct any incorrect or erroneous records as needed. Upon confirmation, the posting can still be processed.

Your entries are saved automatically. You have successfully set up the VAT ID validation service.