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Author's profile photo Ganna Hrivnakova

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.

 

 

 

 

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      23 Comments
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      Author's profile photo Khan Muhammad Al- Araf 172-15-10166
      Khan Muhammad Al- Araf 172-15-10166

      For the vat software : https://smartvat.com.bd/ is one of the best and cheapest vat software providing organizations.

      Author's profile photo Max van der Randen
      Max van der Randen

      Dear Ganna,

      I was wondering what the difference is between the settings Without Warning, Warning or Block in the VAT Number Verificatioin Failure - Define Actions?

      If I set this to Without Warning on a Purchase Order I still get the message below:

       

      Author's profile photo Ganna Hrivnakova
      Ganna Hrivnakova
      Blog Post Author

      Hi Max,

      This message has nothing with the described feature.

      In case you choose Block you will not be able to continue: VAT number is invalid or the verification process has technical issues. For more information, check the "Business Partner VAT Number Verification" window.

      In case you choose Warning you will receive the message and can decide to continue or not, to add some actions for VAT number checking, to assign other VAT code, etc.: VAT number is invalid or the verification process has technical issues. For more information, check the "Business Partner VAT Number Verification" window. Do you want to continue? 

      In case you choose Without warning, then only common VAT number checks are performed like you have faced.

      Kind regards,

      Ganna

       

      Author's profile photo Mirko Lange
      Mirko Lange

      Hi Ganna,
      is there an option to have a archive or history for each bp?
      But if a tax audit happen, you can check the bp for a special date and if verified or not.
      Bye Mirko

      Author's profile photo Ganna Hrivnakova
      Ganna Hrivnakova
      Blog Post Author

      Hi Mirko,

      Archive data with VAT number verification are stored in the ACR1 table. All archive data are stored according setting History/Log in the Services tab of General Settings (Administration -> System Initialization).

      Kind regards,

      Ganna

      Author's profile photo Federico Salvini
      Federico Salvini

      Hi Ganna,

      I have a question about the connection between SAP Business One and VIES, is it an automatic connection or I have to install something?

      Thanks in advance for the answer,

      Federico.

      Author's profile photo Ganna Hrivnakova
      Ganna Hrivnakova
      Blog Post Author

      Hi Federico,

      The connection with VIES installed automatically when user enables the feature in General Settings. Kind regards,

      Ganna

      Author's profile photo Elena Koshuharova
      Elena Koshuharova

      Hi Ganna,

      Is there a way to show the company name from VIES in some UDF?  

      Because one may "Duplicate" BP, change the name and not change the VAT Number.

      The system registers VAT number as Valid, but still, the name of the company does not correspond to the one in the system. I guess it is not OK to overwrite the name in system, but I would like to show it somewhere in the system. Is there a way ?  I mean, SBO is already taking some data from VIES

      Thanks in advance

      Elena

      Author's profile photo Ganna Hrivnakova
      Ganna Hrivnakova
      Blog Post Author

      Hi Elena,

      Once the VAT ID is valid according VIES the company name and address data from VIES can be seen in the Response Name and Response Address fields in the Business Partner VAT Number Verification window. These fields can be added to the form using form settings.

      Kind regards,

      Ganna

      Author's profile photo Elena Koshuharova
      Elena Koshuharova

      Thanks for the fast reply. That sure is a great functionality.

      Author's profile photo R. de Lange
      R. de Lange

      Hi Ganna,

       

      Thank you for a very nice article.

       

      Is there anyway to trigger this functionality via the DI API or Service layer?

       

      Regards, Riana

      Author's profile photo Ganna Hrivnakova
      Ganna Hrivnakova
      Blog Post Author

      Hi Riana,

      I did not test that in DI API and SL. However, it should work there.

      Kind regards,

      Ganna

      Author's profile photo Piotr Jagodzinski
      Piotr Jagodzinski

      Does the system check all BP automatically (at night) or only manually?

       

      Author's profile photo Ganna Hrivnakova
      Ganna Hrivnakova
      Blog Post Author

      Hi Piotr,

      the functionality is exposed in DI API and SL. You can create Add On to run the checking at night.

      Kind regards,

      Ganna

      Author's profile photo Piotr Jagodzinski
      Piotr Jagodzinski

      I didn't find this kind of method on SL and DI API.

      We have a problem with "standard period verification" - It's not working.

      We don't know which service is responsible for that, to restart it.

      Author's profile photo Ganna Hrivnakova
      Ganna Hrivnakova
      Blog Post Author

      Hi Piotr,

      If user wants to verify VAT Number by DI API, directly use “Update“ method to update BP Master Data.

      Kind regards,

      Ganna

       

      Author's profile photo Ganna Hrivnakova
      Ganna Hrivnakova
      Blog Post Author

      Hi Piotr,

      If user wants to verify VAT Number by DI API, directly use “Update“ method to update BP Master Data.

      Kind regards,

      Ganna

      Author's profile photo Piotr Jagodzinski
      Piotr Jagodzinski

      What field should be updated?

      Author's profile photo Ganna Hrivnakova
      Ganna Hrivnakova
      Blog Post Author

      Hi Piotr,

      Simple update. See the sample:

      int retCode = oCompany.Connect();
      oCompany.StartTransaction();

      SAPbobsCOM.BusinessPartners oBP = (SAPbobsCOM.BusinessPartners)oCompany.GetBusinessObject(SAPbobsCOM.BoObjectTypes.oBusinessPartners);
      if (oBP.GetByKey("C20000") == false)
      return;
      int ret = oBP.Update();
      if (ret != 0)
      {
      MessageBox.Show(oCompany.GetLastErrorDescription());
      oCompany.EndTransaction(SAPbobsCOM.BoWfTransOpt.wf_RollBack);
      }
      else
      {
      MessageBox.Show("Updated Successfully!");
      oCompany.EndTransaction(SAPbobsCOM.BoWfTransOpt.wf_Commit);
      }

       

      Ganna

      Author's profile photo Piotr Jagodzinski
      Piotr Jagodzinski

      According to what you wrote, it's looks that is not optimized process. If We ask VIES in every update of BP (via DI API), without indicate some kind of field to update It's really loss of resources.

      In interface We have 2 step process:
      1. We choose from "more" Verify BP VAT no. ("I understand throught that some field is changing in that place")
      2. Then We press update button

      In example that you provided, We don't have any new information in code that will be different then standard BP update.

      Author's profile photo Federico Salvini
      Federico Salvini

      Good morning Ganna,

      I have a problem with the VAT number validation service.

      I have enabled the feature, but once i proceed to verify the vat number for any BP entered in the system i do not get any response description. Below is an example with a test BP registry to which I entered an invalid vat number

      It appears that the VIES service is not working.

       

       

      Would you have any advice to fix this problem?

       

      Thanks in advance for your support.

       

      Kind regards,

      Federico

      Author's profile photo Ganna Hrivnakova
      Ganna Hrivnakova
      Blog Post Author

      Hi Federico,

      Please, see the Note EU_Business Partner Vat Number Verification Functionality Does Not Work .

      Kind regards,

      Ganna

      Author's profile photo Federico Salvini
      Federico Salvini

      Thank you very much.