Bad master data as an objection to VAT automation
Some clients may have have poor underlying master data, and believe that this makes automated VAT determination difficult. They may believe that having clean master data is a pre-requisite for starting a VAT Add-on project.
The Meridian response
As part of a VAT Add-on implementation Meridian would analyse the client's master data set up and recommend a best in class set up. In practice, a VAT Add-on project is a great opportunity to also clean up VAT relevant master data.
In respect of legal partner settings, Meridian will recommend a default setting whilst still allowing customer specific over-rides (via a VAT Add-on table). This can often remove the need for dummy VAT ID maintenance (e.g. against a ship-to party). Furthermore, Meridian will also recommend the best practice approach for maintaining domestic and foreign VAT IDs of customers and vendors. With the activation of the VIES module there will be an automated mechanism within the system to validate such VAT IDs.