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Checking the VAT Status of a Business Entity

Polish Localization enables you to validate VAT payer status by connecting to the VAT status validation service with the API that is available on the Tax Portal since April 2018. The Ministry of Finance has set the rules for exchanging information between the network service and the interfaces of clients’ systems that retrieve information about statuses of taxpayers registered as VAT payers.

Currently, only the SprawdzNIP (CheckVATReg.No) service is available. Based on the VAT registration number, it is possible to verify whether the business entity is registered as a TAX taxpayer on the day preceding the submitted query. The Ministry of Finance is planning to launch the SprawdzNIPNaDzien (CheckVATReg.No.At.Date) service.

In response to the query sent, the SprawdzNIP service returns the Code and the Message values:

  1. Code – Specifies a one-character code of the result of the operation. It can refer to the business entity registration status as a VAT payer or a query error.

Possible codes of registration statuses:

  • N – Specifies that the business entity with a given VAT registration number is not registered as VAT payer.

  • C – Specifies that the business entity with a given VAT registration number is registered as an active VAT payer.

  • Z – Specifies that the business entity with a given VAT registration number is a VAT payer exempt from the VAT.

Possible error codes:

  • Error – Specifies a query error – an incorrect VAT registration number.
  1. Message – Specifies a code description referring to the result of an operation.

The user can see one of the following messages:

  • the business entity with a given VAT registration number is not registered as a VAT payer.

  • the business entity with a given VAT registration number is registered as an active VAT payer.

  • the business entity with a given VAT registration number is registered as a VAT exempt payer.

Polish Localization provides an extension to the Business Central functionality, offering the Check VAT Status feature which can be used in purchase and sales transactions. It requires an active connection to the Internet.

Important

In the Country/Region Code field in Address & Contact part, enter the PL code, also for Polish customers and vendors. On the Countries/Regions page in the ISO Code field set the PL value in the lines where PL is selected in the Country/Region Code.

Checking the VAT Status of a Business Entity

The checking VAT status feature is available in the following cards: Customer Card, Vendor Card, Contact Card and in the documents: Sales Order, Sales Invoice, Sales Credit Memo, Purchase Order, Purchase Invoice, Purchase Credit Memo.

Checking the VAT Status for the VAT Contracting Party

To check the status of the VAT business entity:

  1. Open the card of a selected customer, vendor or contact and select the AssistButton in the VAT Registration No. field.

  2. On the ribbon in the new VAT Registration Log window, select the Check VAT Status action.

  3. The system returns the result of VAT payer status verification in the VAT Registration Log window:

  • Entry No. – Specifies a a subsequent number in the VAT registration log,

  • NIP/VAT Reg. No – Specifies a VAT registration number for which the status was verified.

  • Status - The following options are available:

    • Unverified,
    • Correct,
    • Incorrect.

  • VAT Status Code - The following options are available:

    • N – Not registered - Specifies the business entity with a given VAT registration number is not registered as a VAT payer.

    • C – Active - Specifies the business entity with a given VAT registration number is registered as an active VAT payer.

    • Z - Specifies the business entity with a given VAT registration number is registered as an VAT payer that is exempt from VAT.

    • I – Specifies a query error – incorrect VAT registration number.

    • Status Not Verified - Specifies that the VAT status has not been verified for a given entity.

  • VAT Status Message - The following options are available:

    • The business entity with a given VAT registration number is registered as an active VAT payer.

    • The business entity with a given VAT registration number is registered as a VAT exempt payer.

    • Incorrect VAT Registration Number.

  • VAT Status Date – Specifies the day preceding the day when the VAT payer status was verified.

  • Verification Date - Specifies the date and time when the VAT payer status was verified.

  • User ID – Specifies the identifier of the user checking the status.

Checking the VAT Status in a Document

To check the VAT payer status in a document:

  1. Open a new sales order, sales invoice or sales credit memo card. Then, select the customer.

  2. On the ribbon, select Process, and then choose the Check VAT Status action, or on the ribbon select Actions, Functions, an then Check VAT Status.

  3. One of the following messages will be displayed:

  • The business entity with a given VAT registration number is not registered as a VAT payer.

  • The business entity with a given VAT registration number is registered as an active VAT payer.

  • The business entity with a given VAT registration number is registered as a VAT exempt payer.

  • Incorrect VAT Registration Number.

  1. On the Invoice Details FastTab, under the VAT Reg. No. field, the VAT Status field has been added. The field contains information about whether a VAT registration number for a given document has been verified and what the verification result is. Before validation is run, the field contains Status unverified which means that the VAT payer status has not been verified yet. After verification, one of the following statuses will be shown:

  • N – Not registered - Specifies the business entity with a given VAT registration number is not registered as a VAT payer.

  • C – Active - Specifies the business entity with a given VAT registration number is registered as an active VAT payer.

  • Z- Exempt - Specifies the business entity with a given VAT registration number is registered as a VAT payer that is exempt from VAT.

As a result of posting the sales document, information about the verification of VAT status is moved to the posted document. The Posted Sales Invoice page on the General Fast Tab shows the VAT Status Code that contains analogical information that is entered from the unposted document:

  • N – Not registered - Specifies the business entity with a given VAT registration number is not registered as a VAT payer.

  • C – Active - Specifies the business entity with a given VAT registration number is registered as an active VAT payer.

  • Z- Exempt - Specifies the business entity with a given VAT registration number is registered as a VAT payer that is exempt from VAT.

If the VAT status is not validated when the document is entered, the VAT Status Code field shows a message Unverified Status.

Note

The functionality of checking the VAT status for a business entity in purchase documents Purchase Order, Purchase Invoice, Purchase Credit Memo, Posted Purchase Invoice, Posted Purchase Credit Memo works in the same way as in sales documents.

See Also

Checking the VAT Status of a Business Entity