Tax Registration IDs / VAT numbers of EU customers can be automatically validated through the online VAT Information Exchange System (VIES). The VIES service is free and provided directly by the European Community taxation department.
Providers are now able to automatically validate Tax Registration ID / VAT number for their EU customers through the online VAT Information Exchange System (VIES). An order placed by the customer with a black-listed Tax Reg ID (or the one missing in VIES) can be marked as fraudulent and will not be provisioned. This allows to reduce the number of fraud orders.
Limitations
This validation is only effective within the Checking Orders after Placement filter (validation from the Online Store is not supported).
If a provider wants to use the VIES VAT validation in CloudBlue Commerce, they should configure the Checking Orders after Placement fraud filter:
- From the home dashboard of the Billing panel, open Fraud Screening [set up].
- Select the Filter for Checking Orders after Placement filter to edit.
- Add fraud rules to the filter at the Rules tab.
- Set the fraud filter's thresholds to define when an order should be put to Manual and Fraud statuses.
- Activate the filter.
- Now whenever a EU customer places an order, their VATs are validated through VIES. If any of thresholds was reached, you will find the order either under the Manual Action Required or Suspicious/FraudulentOrders tabs in the Billing panel, respectively.
Note: The VIES VAT validation is performed after order placement only, and should be configured in the Checking Orders after Placement filter.