Welcome > Configure Kofax AP Agility > Manage Invoice Processing > Country-specific configurations > European and other countries with VAT > VAT compliance check > Configure cross-border EU VAT registration number checks

Configure cross-border EU VAT registration number checks

For cross-border EU transactions, a vendor may apply a zero-rate on the value added tax (VAT) charged on their invoice. However, they must specify both the VAT registration number and the customer VAT registration number on the document. The customer is obliged to calculate and declare the VAT at their local rate to the local tax authorities, as if the purchase had been made from a domestic vendor.

You can configure the cross-border EU VAT registration number checks, by following these steps.

  1. Using the menu, navigate to the Settings > Invoice Processing > Capture Profiles > Tax Settings > Tax Configuration tab.
  2. Ensure that Activate VAT Compliance Check is selected.

    Several additional tax settings are displayed.

  3. Select Check VAT Cross Border.
  4. Optionally, if there are company codes that do not require the cross-border VAT check, enter the company codes as a comma-separated list into the Cross Border Company Code Exceptions setting.

    The system sends a document to the Validation Activity if all of the following conditions are true.

    • Zero tax is charged.

    • Both the vendor and company code are from different EU countries.

    • The vendor has a VAT registration number populated in the vendor extract.

    • Either the vendor or VAT registration number or the bill-to VAT registration number is missing, or has not been captured from the document.