- Validating VAT Registration Numbers (VRNs) is a legal requirement, but many organizations struggle due to fragmented data ownership and inconsistent processes.
- Tax professionals are responsible for compliance but often lack control over the data, which is managed by multiple teams and systems.
- Manual validation processes are slow, error-prone, and unsustainable, especially as VRN data changes and requires continuous monitoring.
- Proving compliance during audits is difficult due to fragmented and inconsistent evidence.
- Failing to validate VRNs properly can lead to denied VAT recovery, financial penalties, audits, reputational damage, and increased scrutiny, especially with new regulations like ViDA demanding real-time validation and clear audit trails.
Source: innovatetax.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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