For example, to apply the 0% VAT rate for cross-border transactions within the European Union the customer needs to provide a valid VAT number. Romania uses additional statuses besides valid or invalid that lead to different tax treatment (Inactive or deferred status).
Because of this it is vital for your system to register the correct status of every customer indirect tax registration in your system. Indirect tax decisions will automatically be made during the tax determination process based on this status.
The Taxmarc Indirect Tax ID Validation module is an SAP integrated solution which can automatically check the indirect tax identification numbers and names of the customer/vendor/business partner master data against the VIES database of the European Commission. Several European countries now require you to use their local registration database instead of the VIES database. Taxmarc provides connection to the German and Romanian databases.
Outside the EU connections to the UK and Singapore Tax ID validation databases are also included. Confirmation of the check results (consultation ID) will be stored for audit purposes when provided.
Indirect TAX Identification numbers can expire or change due to changes in the legal structure of customers/vendors. Therefore, it is important to periodically re-check these numbers. With the Taxmarc Indirect Tax ID validation module, the check is done on-line when maintaining masterdata but can also be scheduled periodically as part of SAP master data cleansing/maintenance.
The main advantages of the Indirect Tax ID Validation module are:
- VIES and local databases integrated in one module. Taxmarc automatically decides which database to select per requested call.
- Runs seamlessly in standard SAP. Certified solution.
- When the sales and or purchase engine is installed, the status of the Ind TAX ID number is integrated in the Tax Control Framework and in the configuration of Taxmarc. During tax determination the status is taken into consideration. For special statuses configuration is available to drive the correct tax outcome (e.g., Romania non-deductible due to inactive Ind Tax ID number)
- All results are stored in Taxmarc tables in the SAP system. For integration into the business partner (customer and vendor) additional screens are added displaying the statuses of their ind Tax ID number. This integration requires the sales and or purchase engine to be installed.
- The service can be called as a cloud service.
- Periodic mass checks as well as individual checks during BP creation are supported.