Add VAT IDs to your billing system

Instructions to add VAT IDs in your billing system can be found in the integration setup steps for each system. If you are currently integrated with the Anrok API, you have the additional option to add VAT IDs using the customerTaxIds object. See Create or update transactions in the Anrok API.

VAT ID validation statuses

Since all countries have their own standard VAT ID format, Anrok can help support with the VAT ID validation required. Anrok's customer VAT ID validation service uses two verification methods:

• Format check — The customer VAT ID matches the correct format for the jurisdiction.
• API check — Anrok connects to the jurisdiction's tax authority system and confirms the VAT ID exists and isn't expired (not applicable in every jurisdiction).

During the validation process, Anrok performs API checks for countries that specifically require an API check, including the European Union (27 member states), the United Kingdom, and Australia. All other VAT ID validations are based on a format check.

Anrok will display the following VAT ID validation status based on the results of its format or API check:

VAT ID validation FAQs

We understand you may have questions about VAT ID validation for global jurisdictions. Many of these questions are common, so let's work through some of these commonly asked questions together:

Are VAT ID updates in my billing system automatically sent to Anrok? The billing systems that send VAT registration numbers (Customer “VAT IDs”) information to Anrok when an existing transaction is updated include NetSuite, Stripe, Xero, Ordway, and Quickbooks.

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 VAT ID 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.

How does VAT ID validation impact my Anrok billing? For international sales, a sale is billable based on the VAT ID validation or Tax calculation start date (depending on which date is earliest). If a customer makes a purchase before a jurisdiction's earliest VAT ID validation or Tax calculation start date, the sale will not count toward your billable sales. If a customer makes a purchase after the jurisdiction's earliest VAT ID validation or Tax calculation start date, the sale will count towards your billable sales. For example, let's say you had a sale that occurred in Ireland on April 5, 2020. In the EU OSS jurisdiction, your Tax calculation start date is Jan 1, 2023, but your VAT ID validation start date is Jan 1, 2015. In this case, the earliest start date would be your VAT ID validation start date. Since this sale occurred after your VAT ID validation start date, the sale will count toward your billable sales.

Valid VAT ID formats

Displaying a customer’s VAT ID on invoice documents is a common requirement that you can satisfy by adding VAT IDs to customers. Anrok uses the VAT IDs sent from your billing system to adjust the transaction's tax implications. When providing a VAT ID to Anrok, it is important for the VAT ID provided to be in the correct format. Listed below are common VAT ID formats: