The VAT Invoice Checker checks incoming invoices for their legally prescribed content which is a mandatory prerequisite for input tax deduction in many EU member states. It also runs feasibility checks in the background in order to validate the consistency of an invoice’s content. Furthermore, it automatically validates such data by connecting to external databases provided by the respective EU member states’ tax authorities.
Under the tax laws of EU member states which are determined by the EU VAT Directive (2006/112/EC), companies receiving invoices for the supply of goods and services can get reimbursed for their VAT payments on such invoices under certain circumstances. In order to be entitled to such a deduction, the corresponding invoices must contain a series of legally prescribed details. The process of checking and validating these details is very onerous and time consuming for companies and ties up valuable internal resources.
With a VAT Invoice Checker, the entire process from checking the invoice to validating the information contained therein can be automated on one central platform. While the invoice’s content can be entered via an interactive input form, the tool automatically runs validation checks of such data in the background and thereby ensures that inconsistencies and errors are instantly brought to light. On top of that, the VAT Invoice Checker can also verify the invoice issuer’s VAT ID and company details via the respective tax authority’s database and thereby ensure all information is correct and valid. The embedding of the tool in the existing IT infrastructure ensures that all processed information is stored centrally.
How it works
Through a customizable and interactive questionnaire all relevant invoice data is collected and processed. The data is collected in a structured and standardized format which enables its automated processing.
An automated verification check of the entered invoice data is conducted automatically in the background by verifying such data with the respective national tax register. This process can be intertwined with the automated generation of requests to the invoice issuer for the completion and/or correction of such data if the test yields a negative result.
All invoice data and verification reports are either stored in a centralized database or directly written back to the company’s CRM system. All invoice data is easily accessible and ongoing review processes can be easily tracked via a customizable dashboard.