When you override the tax validation routine for a specific customer or supplier, the system does not validate the Tax ID for the specific customer or supplier, but it continues to validate the Tax ID for all of the other customers and suppliers in the country.(ESP, FRA, ITA) You override the tax validation routine for these countries by entering (zero) in the Person/Corp field for the supplier or customer.After you activate the VIES validation, the system automatically validates a new VAT identification number that you enter in the Tax field of the standard application, for example, Address Book, Supplier Master, or Customer Master.You enter the VAT identification number by prefixing the country code of the country issuing the VAT number.When you activate the VIES validation, the system performs the VAT identification number validation via VIES and does not use the JD Edwards Enterprise One validation routine.To validate EU VAT identification numbers using the VIES system, you must activate the VIES validation in the 74/VV UDC table.The European Commission set up the VAT Information Exchange System (VIES) Web service to enable quick and easy validation of VAT identification numbers throughout the EU community.
Tax IDs are also called VAT codes, VAT registration numbers, or fiscal codes.
For example, if you specify in the Localization Country Code field, you can still validate tax IDs for other countries.
The system uses the value in the Country field on the Mailing tab on the Address Book Revision form to determine which validation to use for each address book record.
In the EU, the VAT system for intracommunity trade exempts member states that dispatch goods from paying VAT if the receivers of the goods in the other member states are taxable persons who will account for the VAT on receiving the goods.
Suppliers must verify if the customers receiving the goods are taxable persons and hold a valid VAT identification number.