Odoo - Integrated confirmation of foreign VAT ID

Validation of the VAT ID of EU member states with the interface (eVatR) of the German Federal Central Tax Office

The value added tax identification number (VAT ID number) is used for the clear identification of companies within the European Union (EU) and can be applied for at the tax office or the Federal Central Office. Companies wishing to carry out intra-community transactions tax-free are required to check the foreign VAT ID number.

The Federal Central Tax Office describes the examination of foreign VAT ID numbers as "the examination of whether, at the time of performance, the delivery or other service is being performed to an entrepreneur registered in another EU member state. The entrepreneurial status of the service recipient must be proven in order to be able to treat a delivery as tax-free - if the other conditions are met. In the case of other services, proof of the entrepreneurial status of the recipient of the service enables the tax liability to be shifted to the recipient."

The Federal Central Tax Office distinguishes between the simple or qualified confirmation procedure. The simple confirmation request checks the validity of the foreign VAT ID number. The qualified confirmation request additionally checks whether the details of the company's name, town, postcode and street match.

The verification of the VAT ID can be done online at the Federal Central Tax Office. Alternatively, inquiries can also be made by post, telephone, fax or e-mail, also at the Federal Central Tax Office. In addition to this, the Federal Central Tax Office provides an XML-RPC interface which offers the possibility of integrating the audit directly into the ERP system of a company.

Odoo does not offer a module for the examination of foreign VAT numbers as a standard feature. However, the manaTec development team has designed a module which integrates the examination of foreign VAT numbers into Odoo. The module is currently available for Odoo versions 10, 11, 12 and 13.

The configuration for activating the check of the foreign VAT ID number is carried out in a few steps. First of all, you need to enter your own VAT registration number, which is the prerequisite for successful checking of the foreign VAT registration number. To do this, we navigate to Settings --> Users & Companies --> Companies and enter our VAT ID there.

The indication of your own VAT ID is a precondition for the verification of the foreign VAT ID
The indication of your own VAT ID is a precondition for the verification of the foreign VAT ID.

In the second step we navigate to the general settings in the Finance module. There we activate the check of the foreign VAT ID number.

In the settings of the Finance module, the check of the VAT ID number is activated
In the settings of the Finance module, the check of the VAT ID number is activated.

In addition, we have the possibility to define whether we want to perform the simple or qualified confirmation. For the completeness of correct data, it is recommended in any case to activate the qualified confirmation request at this point.

The foreign VAT ID is now checked in the Contacts module when a new contact is created or when the company name, VAT ID or address of an existing contact is changed. The results of the query are then logged in the history of the contact. If the query data does not match the check, the Federal Central Tax Office recommends contacting the company to query the correct data.

The VAT ID is correct, but not all data match
The VAT ID is correct, but not all data match.
The VAT ID number is correct and all the data matches
The VAT ID number is correct and all the data matches.

In addition to querying the foreign VAT ID number in the contact object, the check is also carried out in the Sales and Purchasing modules when a sales or procurement order is confirmed. The result of the check is logged in the history of the sales or procurement order. It is also recommended that you contact the customer or supplier at this point if the check reveals discrepancies in the correctness of the data.

Checking the VAT ID number when confirming a sales order
Checking the VAT ID number when confirming a sales order.
Checking the VAT ID number when confirming a purchase order
Checking the VAT ID number when confirming a purchase order.

The great advantage of our module is not only the checking of the foreign VAT number, but without doubt the complete automation of these processes. The query is not only carried out once initially, but always when the relevant data of a contact is changed, as well as during each sales and purchasing process. In this way, we ensure that the contact data of our customers and suppliers is always up to date, thus avoiding the risk of unwanted and possibly high tax back payments.

Here in the Odoo app store you can find our module for the check of the foreign VAT ID number.

You are already using Odoo and are looking for a fully automated tool to check the VAT number of your business partners in other EU countries? You have questions about this or our other modules? Contact us now and we are very happy to be a reliable partner at your side!

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Sources: www.odoo.com, www.bzst.dewww.unternehmenssteuern.de