What is VAT ID validation?
All countries have their own standard format for the VAT IDs they issue. So that you know if your customer provides a VAT ID you can always confirm it has the required attributes of a valid VAT ID from that specific country. Certain countries also provide a website where VAT IDs can be validated to ensure they not only meet the format requirements but are not expired, revoked, or otherwise invalid.
What does Anrok do with regard to VAT ID validation?
Anrok supports the required VRN validation for relevant countries. Anrok's customer VRN validation service uses two verification methods:
- Format check: The customer VRN matches the correct format for the jurisdiction
- API check: Anrok connects to the jurisdiction's tax authority system and confirms the VRN exists and isn't expired (not applicable in every jurisdiction).
API checks are performed for countries that specifically require an API check, including the European Union (27 member states), the United Kingdom, and Australia. All other VRN validations are based on a format check.
What does my VAT ID status mean?
|VRN is valid according to local country specification|
|VRN was present on the transaction but was invalid|
|VRN was expected due to a B2B product tax code in a region that requires VAT ID collection on B2B sales, but no VRN was present on the transaction|
|VRN was present on the transaction but VRN validation is not enabled in Anrok|
|[Blank]||No VRN was provided on the transaction. This is expected behavior for B2C transactions.|
What if a country's VAT ID validation website is down?
Sometimes the tax authority API is unavailable due to maintenance or when the tax authority system is experiencing technical issues. In these cases, Anrok will perform a format check only to ensure the VRN is appropriate for the jurisdiction. If this was the case on a transaction you will be able to hover over and see that only a format check was done due to a down website.