The only sure thing in life is death and taxes, and that is a saying that entrepreneurs live in their own flesh every day, and although obtaining a new client is always a reason to celebrate, the steps involved in concretion of a new business relationship to be recognized before the Treasury can be a headache.
After all, each sector has its own specific regulations when paying taxes, and these must be taken into account to prevent an apparently lucrative business from ending up generating unexpected losses due to poorly paid taxes.
Those who try to establish commercial relations with a client or supplier within the European Union must know how to recognize and validate VAT numbers, which is the fiscal unique identifier necessary to do transactions with customers from other European Union countries. The EU’s planned initiative is to foster and boost trade among member countries, providing them a market edge over foreign businesses.
Having VAT requires registration with the Registry of Intra-Community Companies. But exactly what is it? It is merely a permanent record that you may use to check the status of your user’s VAT number.
It is your duty as a global B2B company to make sure that the VAT is legitimate and current. You lose money when you use outdated customer data. You should ask for a new VAT number if your customer’s current one expires. Otherwise, you must start adding extra VAT and the reverse-charge process would no longer be relevant.
Using the VIES application or the Registry of Intra-Community Operators, you can verify that the intra-community VAT is accurate. Double-checking this beforehand is crucial to prevent issues with the Tax Agency.
It’s possible that the required Tax invoice doesn’t exist, is inactive, or that the certification is inaccurate if you are unable to find it in the record. If you work in a firm and wish to demonstrate the openness of your books, or if you work in the tax division, you will have several VAT numbers to check each day. We advise you to speed up this process by using an API.
Thankfully, there are technologies available that can automate the procedure of looking up and managing customers’ VAT numbers. One of these is the VAT Validation API, which can confirm a number’s validity as well as its carrier information with just a quick search.
The best method for determining whether a VAT number is legitimate is to use the VAT Validation API. It’s incredibly quick and simple to use! All EU nations are included in the scope of this application programming interface. You can also find out more about the business if the value-added tax is legitimate. If you don’t already have it, you can acquire the company name, the city, the address, the code, and other information from the data.
The VAT Validation API looks through numerous databases from around the continent to identify matches with the VAT number you’re looking for. Additionally, a report will be given that includes details on the nation to which the number belongs, the name of the business, and its address.
This way, you can automate the process of checking and validating VAT numbers of every client or transaction your company makes. It may be used by programmers in whichever programming language best matches the look and feel of their website or application. Python, JSON, PHP, Ruby, C#, and more are all available. Utilize this resource to begin simplifying financial transparency.