One of the cool new features added to Dynamics Nav is the ability to verify UK and European VAT registered organisations within Dynamics NAV.
The main benefits of using the NAV built-in verification tool are:
- The verification is recorded in NAV and remains within the customer / vendor record;
- It is easy to setup this functionality;
- Easy for employee to check the VAT status of UK and European companies saving time and effort;
- Comply with European law that states unless you can prove that a company has a valid VAT registration in their country, full VAT must be charged on selling products or services between European countries.
There are 3 main steps to setting up the functionality as show below:
- Setup website address (link to Europa.eu);
- Verify Countries / Region Code setup;
- Verify VAT Registration Number in Customer / Vendor record.
1. Setting up the Europa.eu URL link within Dynamics Nav
Type in the search box General Ledger Setup.
Go to the reporting section and populate the VAT Reg. No. Validation URL with the following address.
http://ec.europa.eu/taxation_customs/vies/services/checkVatService
2. Verify Countries / Region Code setup
When setting up the country region codes in NAV we must take care in ensuring that they correspond with the EU standard coding.
The screenshot below shows the EU VAT coding on the European Commission web site.
Check these against your NAV Countries/Regions setup, which can be found in Departments > Administration > Application Setup > General > Countries/Regions - or just type Countries/Regions in the search box!
In addition to the above we also need to check that the VAT registration formats are setup and complete. This can be found at the top of Countries/Regions page.
Above we can see the formats that NAV will recognise when entering in the customer and vendor cards.
3. Verify VAT Registration Number in Customer / Vendor record
The setup is complete and we can test the new functionality.
Go to customers and create a new customer. When completing the new customer card we must populate the country/region code for the functionality to work. Then we are ready to enter the VAT registration number. You can see below where the customer card is populated.
If you enter the VAT number in an incorrect format NAV will warn you.
We are now ready to verify the VAT registration number:
Click on the button next to the VAT Registration No. field and this will take you into the following screen:
Then click on Verify VAT Registration Number and Nav should find the name and address of the company.
It’s as easy as that to set up!
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