Why Validating Tax Numbers Is So Difficult, And How to Make It Easier

Why validate tax numbers at all?

There are several reasons to validate a tax ID, but the three most common are:

1. Sales: for multinational enterprises to charge customers the right amount of VAT/GST on their cross-border sales.
2. Purchases: for businesses to check that their suppliers are properly registered to charge VAT/GST; and‍
3. Data Sharing: for platforms and marketplaces to accurately share data about the persons trading via their sites and applications (aka ‘platform sellers’).

Source Fonoa

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