Validating Tax Registrations
The SuiteTax Engine is capable of automatically checking the validity and correct formatting of a tax registration number provided by customers or vendors.
When you add a new tax registration row on a customer or vendor entity record (see Setting Up Entity Default Tax Codes and Tax Groups), NetSuite validates the country code and tax number you enter in the Tax Registration Number column. The results of the validation then appear in the Validation Result column.
Depending on the country code, the SuiteTax Engine performs one of the following types of validation:
-
Validity Checking – For tax registration numbers registered in the European Union (EU), the SuiteTax Engine checks for validity using the EU VAT Information Exchange System (VIES). For more information, see Validating Tax Registration Numbers for the European Union..
-
Format Checking – For tax registration numbers registered outside the European Union (EU), the SuiteTax Engine checks the format of the tax registration number against a pre-defined format. For more information, see Validating Tax Registration Numbers Outside of the European Union.
Checking the Disallow Invalid Entity Tax Registration Number box in your nexus settings prevents users from entering invalid registrations. For more information, see Setting Up Nexus Preferences and Setting Up Nexus Preferences for United States.