Dentons has launched a new automated VAT ID Number Checker tool to support clients in continuously validating the VAT identification numbers of their customers, in compliance with European VAT legislation.

The VAT Information Exchange System (VIES) is the European portal used for the validation of VAT identification numbers. If goods or services are sold cross border, the supplier may use the zero VAT rate, or the service provider can reverse charge the VAT to the customer when certain requirements are met. One of those requirements is that the customer must be identified for VAT and should have a valid VAT identification number.

Dentons has developed an automated solution to check large batches of VAT identification numbers, allowing businesses to outsource the process or to directly integrate this solution into their in-house processes. When processing batches of VAT numbers, the tool automatically retries in cases of missed connections to EU systems or during website maintenance. In addition, each VAT registration ID will be connected to a unique confirmation code as evidence. Depending on the client’s needs, Dentons also provides storage for the validation reports, so that evidence is secured.

VAT Validation is one of the solutions developed by Dentons’ Tax Technology team, whose mission is to develop and offer easy-to-use business solutions for clients. In addition to the VAT Validation service, Dentons will soon launch an automated VAT Decision Tree, Making Tax Digital Wizard and Continuous Monitoring Tool.

“It is our goal to develop solutions and services to integrate checks and controls in the internal VAT processes of our clients. Checking the validity of VAT numbers is a crucial day-to-day process and we make it easy for our clients to fully automate this or to use the service,” said Joyce Zijlstra, Tax partner and Head of the Tax Technology group at Dentons. “With this tool we offer our clients control over an important aspect of VAT compliance to help them avoid the risk of domestic VAT liability and penalties.”

Please download the brochure here

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