Regarding VAT number verification, there are a few key things to keep in mind to ensure accuracy. Here are some best tips to help you out:
1. Check the Country Code and Compare the VAT Number to the Company’s Address:
When validating a company’s VAT number, the country code is one of the most important things to check. This is the two-letter code corresponding to the country in which the number was issued. You can find this on the left-hand side of the number, under the prefix. You should also compare the VAT number to the company’s address. Make sure they match—and the VAT number wasn’t issued to a business in a different country.
2. Confirm that the VAT Number has Nine Digits:
When confirming the VAT number, you must ensure it has nine digits. This is the most common format for a VAT number and will help ensure accuracy. If the number only has eight digits, it is not a valid VAT number.
3. Check for Special Characters and Validate the Check Digit:
When you’re checking to ensure your VAT number is valid, you’ll want to ensure you’re looking for special characters and validating the check digit. The check digit is the one number at the end of your VAT number used to verify the accuracy of the other numbers in the sequence. It’s calculated by taking all the other numbers in the VAT number, multiplying them by a specific weighting value, and then adding this sum. The check digit is the number generated by this calculation, and it’s used to ensure that the other numbers in the sequence are correct.
4. Use Multiple Validation Methods:
When validating VAT numbers, it’s best to use multiple methods. The first and most obvious way is manually checking the number entered against the official government documents. This can be done by looking up company or individual records on the Country’s Revenue website or another official document. Another way to validate a VAT number is to use a combination of algorithms and manual checks. This allows you to automate the process and have an extra layer of accuracy since you’re checking each number against multiple datasets. You can also use software specially designed for vat number validation api, which will save you time while ensuring accuracy.
5. Keep Records of Validated Numbers:
Once you’ve validated your customers’ VAT numbers, remember to keep a record of them. This way, if you have to check again in the future, you’ll have proof that they were already checked and found to be accurate. It’s also important to store these records securely, as they contain sensitive customer data. There are various tools out there that make keeping track of validated numbers easy. For instance, specialized invoicing and accounting software can securely store customer information for easy retrieval—a great way to ensure accuracy and compliance with VAT regulations.
Businesses can improve their VAT number verification accuracy by following these simple tips. By ensuring that all the data included in the VAT number is correct and by checking the number against a list of authorized validators, businesses can avoid costly mistakes and ensure that their transactions are processed quickly and without issue.