Tax registration number
Requirement
All companies are given an identification number, named organization number, by authorities. This number is used when reporting corporate information to the government.
All countries that have VAT as a method of taxation require a VAT registration number. This number is often the organization number, with the addition of the country code.
In Luxembourg, legal entities must be registered with the Administration de l’enregistrement des domaines (AED). The unique business registration number is ten digits long and starts with 0 or 1.
The VAT registration number is named TVA in French and MwSt in German. This number is ten digits long, for example, LU0123456789 or LU1987654320. The prefix is the ISO country code, namely LU, and is followed by the digit 0 or 1.
Inside the European Union, it is possible to have zero VAT on invoices between EU countries, if the VAT registration number is validated before the invoice is printed.
Since January 2020, the validation of the VAT registration number must be done against a portal, either the VIES or BZST.
- VIES is a common portal for EU
- BZST is unique for Germany
Two types of validation exist, standard and qualified.
- Standard – only to validate that the VAT registration is valid. Note that the VIES portal only validates the VAT registration number but not any names or address details. The web services may currently only return a text string with name and address only.
- Qualified – if the VAT registration number is valid also the company name, the postal code and city must be validated. In the online portal called by web services, the legal form of the company and street can be optionally validated in the BZST portal.
M3 solution
The organization number, tax number, and VAT number of the company are stored on the division. The VAT numbers of the company’s customers and suppliers are stored per customer and supplier. The VAT number can be validated online by M3 towards the European VIES portal and the German BZST.
The supplier’s VAT registration numbers are validated towards the VIES in a simplified way once the validation has been activated.
VAT registration numbers that are used for a German entity (division or Fiscal Representation) and result in a VAT-free invoice to other EU countries must be validated towards the German BZST portal in a qualified way. In all other EU countries, the validation towards the VIES portal is sufficient.
For more information, see KB2156708, the M3 Business Engine User Documentation and the Launch Documentation for EU070 "EU VAT Reg. No. Validation".
Configuration guidelines
| Program ID | Program name | Description or comment |
|---|---|---|
| MNS100/G | Company. Connect Division | Specify the tax declaration number and the VAT registration number of the entity. |
| CRS610/J | Customer. Open | Specify the VAT registration number of the customer. |
| CRS620/E | Supplier. Open | Specify the VAT registration number of the supplier. |
| CRS045 | Country. Open | Set the currency code to EUR. |
| OIS002/F | Customer. Connect Addresses | Optionally, in the VAT reg no field, specify the VAT registration number. |
Activate the EU online VAT registration number validation
In an initial run of 'VAT Registration Number. Select Operation' (TXS160), the VAT registration numbers of customers and customer addresses are stored in a new VAT registration number master file on company level to be used from all divisions.
If a new VAT registration number is added, or changed, in the customer master file or address master file, it is automatically stored in the new VAT registration number master file with status “new” and is validated within the next validation run.
The validation result of every validation, run in (TXS160) towards VIES according to the validation policy per base country code, is stored in parallel in the new VAT registration number master file with a detailed validation history.
The new VAT registration number master file is optionally used at the moment of the M3 VAT decision at invoicing.
By using the new TXS070MI API transactions, the validation can be added or run at almost any place in M3 based on the customer’s needs.
| Program ID | Program name | Description or comment |
|---|---|---|
| CMS975 | Feature List. Open | Ensure that the activation described in KB2156708 has been performed. |
| TXS003 | VAT Reg Number Validation Policy. Open |
Create one record for the base country used for invoicing: Set Validation meth to 1-'VIES' or 2-'BZST'. Define the Comp VAT reg no to be used as requester's VAT reg. no. Define the frequency of the validation of a VAT reg no by Meth expirat dt and optionally Days betw valid. Decide if the result of the latest VAT reg. no. validation should be used for the VAT decision at invoicing by Add VAT. Define the VAT responsible. In case the Validation meth is set to 2-'BZST', define where the Street addr fr should be taken. Optionally, specify if Street included, Postal code inc and a written Confirmation letter should be requested. Infor recommends that you set these to 0-'not included' (not selected). |
| TXS011 | Validation Policy. Open Local Exemptions | Optionally, define per division and invoicing base country code the VAT responsible and 'Add VAT' rule differing from the general 'VAT Reg Number Validation Policy. Open' (TXS003) rules defined. |
| TXS160 | VAT Registration Number. Select Operation | Run the initial run (TXS160 – option 'Initial
load') to update the new VAT reg. no. master table. Run the validation on demand (TXS160 – option 'Validation') for a range of VAT reg numbers or base country codes. |
| TXS070 | VAT registration number. Open | Check the validation result if needed. This might
be needed, especially in the case of qualified validation towards
the BZST portal. Run the validation manually per single VAT reg. no. record if needed. |
| SHS030 | Job Schedule Function. Open | Define a scheduled validation run. |