VAT-ID-Check during Billrun

The VAT-ID Check feature allows Instellix to validate European VAT Identification Numbers automatically during invoice creation.

The validation is performed in real time via the official VIES (VAT Information Exchange System) interface provided by the European Commission: https://ec.europa.eu/taxation_customs/vies

The validation result directly influences tax calculation and is stored together with the invoice document for audit purposes.

If you are interested in activating this feature, please contact Professional Services.

Configuration

The VAT-ID Check must be configured on Billing Group level.

Only billing groups with VAT-ID validation enabled will trigger a validation during invoice creation.

When is a VAT-ID check performed?

A VAT-ID validation is executed during invoice creation only if all of the following conditions are met:

Tax calculation is enabled for the invoice (not custom provided)
VAT-ID validation is activated in the assigned Billing Group.
A VAT-ID is present in the invoice address.
The VAT-ID contains a valid EU prefix.

If one of these conditions is not fulfilled, no validation request to VIES is sent.

This selective validation ensures stable bill run performance.

Validation Results

The VAT-ID check can return one of the following results: • VALID • INVALID • FAILED (e.g., technical error or VIES service unavailable)

Impact on Tax Calculation

If Instellix determines the taxes for an invoice, the VAT-ID validation result directly influences which tax rule is applied.

The system distinguishes between tax rules: • with VAT-ID • without VAT-ID

The following logic applies:

VAT-ID Validation Result	Applied Tax Rule
VALID	Tax rule with VAT-ID for the respective country
INVALID	Tax rule without VAT-ID for the respective country
FAILED	Tax rule without VAT-ID for the respective country

Important Notes • This logic applies only if tax calculation is handled by Instellix. • If taxes are externally provided (e.g., client-calculated taxes), no tax rule adjustment is performed. • A result of FAILED is intentionally treated like INVALID to ensure compliance in case of technical issues or temporary unavailability of the VIES service. • The applied tax rule always follows the configured country-specific tax setup.

Storage

The validation result is: • Stored as an attachment on the generated document • Can optionally displayed directly on the document • Displayed in the Web Portal on document level

This guarantees traceability and auditability of VAT decisions.

Notification

Instellix provides a dedicated notification: VAT-ID-Validation-Result

This notification can be used to programmatically retrieve the validation result.

More information: https://docs.instellix.io/reference/further-notifications#vat-id-validated