Skip to Content
Product Information

VAT Number Validation in SAP Business One

The purpose of this blog is to explain how you can easy check and validate VAT Identification number of your business partner to ensure that you are following the rules in accordance to article 31 of Council Regulation (EC) No. 904/2010 of 7 October 2010, see Note: https://launchpad.support.sap.com/#/notes/2860535.

There are different business cases where you need to be sure that your business partner has valid VAT ID No. One of them is European Union requirement for validating the VAT No to prevent tax fraud and tax evasion.

VAT No digits verification in SAP Business One has been already implemented in SAP Business One. You can find that in the Country/Region Setup window in the No. of Digits for Tax ID field. However, this solution is more about VAT No format, not about content.

For sure there are possibilities to use current solution using the extensibility features like User Defined Fields, Formatted Search or code in the Transaction Notifications. However, with new feature of VAT ID Validation you can use it with few clicks in real time.

So, how you can use that?

The first pair of clicks you need to do is to enable the VAT number verification. So, you go to the General Settings => BP tab and tick on the Verify VAT Number for Business Partners and Documents:

The next pairs of click you need to do in the Business Partner Master Data that you need to be sure for his VAT ID number. So, go the Business Partner Master Data and with clicking on the You Can Also button choose the Verify VAT Numbers:

 

And again, you must press Update button in this window.

So, the last click you need to do is to see what happened after all these clicks. Click on the button next to the Federal Tax ID field in the Business Partner Master Data header to open the Business Partner VAT Number Verification window and enjoy the result:

What happens when you do the second pair of clicks? Business One connects to the  VIES (VIES VAT Number Validation) and sends request for the Business Partner VAT numbers defined in the Business Partner Master data and Ship-to addresses, receives response and records that in the Business Partner Master Data in the CRD1 table.

You can save your clicks to perform VAT number verification for the range of the Business Partners without going from one Business Partner master data to another using Verify VAT Numbers menu item In Business Partner folder:

 

So, how can you use this information now?

Let us return to the General Settings => BP tab. You can see the new button near the new check box. Click on that and decide in which documents you want Business One will check if VAT Number is verified and what Business One must do in case the VAT Number is not verified:

And again, two additional clicks on the Update button in this form and BP tab window. Then Business One will check the VAT Number in the VAT Number => Accounting tab in the Marketing Document with Business Partner VAT Number Verification data and will act according your setup.

Additionally, you can set the period for what VAT Number Verification should be run, so you have updated values in your database according your business need. In the same window General Settings => BP tab you can set Max. No. of Days for VAT Number Verification. When Business One verifies VAT number in the Marketing Document it checks also if Marketing Document Posting Date  – positive Response Date is less or the same as number you defined in this field and acts according your setup for the marketing document verification. Do not forget to press Update button in this window when you change your setting.

Available in SAP Business One 10.0 FP 2105 and SAP Business One 10.0 FP 2105, version for SAP HANA for all EU countries localizations. You can also visit the Implementation Arena for useful implementation tips.

 

 

 

 

Be the first to leave a comment
You must be Logged on to comment or reply to a post.