VIES
The VAT Information Exchange System (VIES) is an electronic method for transmitting VAT registration information, such as the validity of VAT numbers, for companies registered within the European Union in the context of cross-border transactions involving goods and services.
The VIES validation add-on simplifies the work for D365 F&O users by enabling the direct verification of a contractor’s VIES data in the system using external registers. These functionalities make it possible to:
VIES validation facilitates the verification of the correctness and validity of a taxpayer's VAT identification number. This helps to prevent situations where an entity presents a false VAT number or is not registered as a VAT payer.
This measure prevents potential attempts at tax fraud, which may occur when entities attempt to evade VAT by using false VAT identification numbers or by utilizing unregistered numbers.
VIES verification assists businesses in maintaining compliance with the European Union's tax regulations. These regulations mandate that entities engaged in international transactions must be registered as VAT payers.
Adherence to VIES validation aids in avoiding fines and other tax sanctions that could be imposed due to non-compliance with tax regulations related to international trade.
VIES validation facilitates international transactions for businesses by aiding in the confirmation of the tax legality of business partners.
It ensures accuracy in tax settlements by verifying the correctness of VAT identification numbers, thereby minimizing the risk of errors in tax settlements.
A comprehensive verification history enables the tracking and documenting of the verification process, which can be crucial for both audits and tax inspections.