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
13 February, 2020 by
Odoo - Integrated confirmation of foreign VAT ID
manaTec GmbH, Tom Pohling
 

The VAT identification number (VAT ID) is used to clearly identify companies within the European Union (EU) and can be applied for at the tax or federal central office. Companies wishing to carry out intra-community transactions tax-free are required to check the foreign VAT ID number.

The German Federal Central Tax Office (Bundeszentralamt für Steuern) describes the verification of foreign VAT numbers as "the verification of whether, at the time the service is provided, the supply or other service is provided to an entrepreneur registered in another EU member state. The entrepreneurial status of the recipient of the service must be proven in order to be able to treat a supply - if the other requirements are met - as tax-exempt. In the case of other services, it is possible to shift the liability for tax to the recipient of the service by providing evidence of the recipient's entrepreneurial status."

The Federal Central Tax Office differentiates between the simple and qualified confirmation procedures. The simple confirmation request checks the validity of the foreign VAT registration number. The qualified confirmation request additionally checks whether the details of the company's name, city, postal code and street correspond.

The VAT registration number can be checked online at the Federal Central Tax Office. Alternatively, inquiries can also be made by mail, telephone, fax or e-mail, also at the Federal Central Tax Office. In addition, the Federal Central Tax Office provides an XML-RPC interface, which offers the possibility of integrating the check directly into a company's ERP system.

doo does not offer a module for checking foreign VAT numbers in the standard version. However, the manaTec development team has created a module that integrates the checking of foreign VAT numbers in Odoo.

The configuration to activate the foreign VAT number check is done in a few steps. First of all, we need to specify our own VAT number, which is a prerequisite for successful verification of foreign VAT number. To do this, we navigate to Settings --> Users & Companies --> Companies and enter our VAT number 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 option to define whether we want to perform a simple or qualified confirmation. For the completeness of correct data, it is recommended to activate the qualified confirmation request at this point in any case.

The foreign VAT number check is now performed in the Contacts module, when creating a new contact or changing the company name, VAT number or address of an existing contact. The results of the query are subsequently logged in the contact's history. If the query data does not match the check, the Federal Central Tax Office recommends contacting the company to request 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 the foreign VAT number query in the contact object, the check is also performed in the Sales and Purchasing modules when confirming a sales or procurement order. The result of the check is logged in the history of the sales or procurement order. Here, too, it is advisable to contact the customer or supplier 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 verification of the foreign VAT number, but undoubtedly the complete automation of these processes. The query is not only performed once initially, but always when the relevant data of a contact is changed, as well as during every sales and purchasing transaction. In this way, we ensure that the contact data of our customers and suppliers is always up to date, thus preventing the risk of unintentional and possibly high additional tax payments.

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


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

 
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