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.
Background
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 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 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 our accounting automation tool in the existing enterprise IT solutions ensures that all processed information is stored centrally.
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Benefits
Automated & standardized
The VAT Checker allows to check and validate incoming invoices in an automated and standardized manner. It thereby provides an easy-to-use workflow for executing this repetitive yet indispensable accounting process.
External resources
The VAT Checker can connect to the databases of any EU member state’s tax authority to verify the invoice issuer’s data with the respective national register.
Centralized audit trail
Within the VAT Checker all relevant steps, actions and assessments are tracked and documented in a centralized audit trail. This allows for a transparent and comprehensive process that makes it easy to prove and document the validity of all processed invoice data.
Integrated
The VAT Checker can easily be integrated into the company’s existing IT infrastructure and thus enables a seamless accounting workflow.
Highly customizable
Every application built on BRYTER is customizable. The VAT Checker can therefore be adjusted to the custom workflows and policies of any accounting department. The unique BRYTER platform gives unparalleled opportunities for customization.
How it works
Process data
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.
Run checks
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.
Store results
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.