It pays to know something about a firm before doing business with them. While a fast Google search will provide you with some background information on a firm – as well as customer reviews — using a tool like DueDil can provide you with a more in-depth look at topics like turnover, profit, and assets.
Regardless of how thorough you are, it is critical that you verify the VAT number of any VAT-registered business with which you do business.
What is the meaning of a VAT number?
A Business VAT number, often known as a VAT registration number, is a unique code assigned to businesses that are VAT-registered. Businesses can find their own number on their HMRC-issued VAT registration certificate, while other businesses' numbers should be stated on any invoice they send.
How does a VAT number appear?
If you're unfamiliar with VAT, remember that UK VAT numbers are nine digits long and frequently begin with the letters ‘GB.'
To learn about the style and format of VAT numbers in the EU, go to the government's website.
Why is it necessary to double-check a VAT number?
If you don't double-check a VAT number and wind up putting an erroneous number on your return, your invoice will be invalidated, and HMRC will deny your tax input claim, leaving you to count the costs and deal with a mountain of paperwork.
The majority of VAT number issues are due to human error, although there have been occasions where people have attempted to fraudulently use someone else's VAT number.
Fortunately, performing a fast check is simple. To avoid any problems, simply follow the procedures below.
How to conduct a VAT registration audit
When it comes to doing a VAT registration check in the United Kingdom, you have two alternatives. You could do the following:
HMRC's VAT Helpline can be reached at 0300 200 3700. During the week, this line is open from 8 a.m. to 8 p.m.
Use the VIES website, which is an online VAT checker for EU firms. This website uses real-time data streams from the VAT systems of various member states.
If a VAT number appears to be invalid on the website, double-check with the company to ensure you have the proper number. You might also want to let them know that the number is showing up as invalid on the VIES site, so they can contact HMRC to resolve any issues.
