Introduction
Enabling VAT ID validation in Anrok is essential for tracking international economic nexus exposure and ensuring VAT is calculated correctly for B2B sales (in countries where applicable). Since all countries have their own standard VAT ID format, Anrok can help support with the VAT ID validation required.
Note
Anrok validates VAT IDs on your behalf and uses this information to accurately calculate your total exposure & ensure customers are sharing correct tax information.
If you enable VAT ID validation before you upload historical transactions, global historical transactions after your configured VAT ID validation start date will count towards your committed taxable revenue or Anrok usage rate. For VAT ID validation enabled on a go-forward basis and after historical transactions are uploaded, your Anrok usage rate will be applied to future global transactions.
More information can be found in the "How does VAT ID validation impact my Anrok billing?" FAQ below.
Enable VAT ID validation
You can enable VAT ID validation in Anrok to ensure economic nexus exposure is accurately tracked for B2B sales (in countries where applicable). Enabling VAT ID validation and tax calculation also ensures tax is accurately calculated and collected for your B2B customers. VAT ID validation allows you to shift the responsibility of tax to your B2B customer since auditors and tax authorities will expect documented proof of VAT ID verification.
Note
It is recommended you have customer VAT IDs in your billing system prior to enabling VAT ID validation in the jurisdiction. See Send VAT IDs to Anrok for validation.
Try enabling VAT ID validation in the demo above ☝️
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In the Anrok app
, go to Jurisdictions. Take me there!
- Navigate to the global jurisdiction, then click VAT ID validation.
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Under When should Anrok begin validating customer VAT IDs for transactions?, enter the date Anrok should begin validating customer VAT IDs for the jurisdiction.
- When you are finished, click Enable VAT ID validation.