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In line with the end of the Brexit transitional period HMRC have launched a comprehensive checker for UK VAT numbers. 

Following the UK's exit from the European Union, VAT registration details of UK companies are no longer maintained on the VAT Information Exchange System (VIES). 

The ability to check the validity of a new supplier's VAT number is an important step in combatting VAT fraud. For example, a rogue supplier might provide what looks like a valid VAT invoice to another business. If the supplier isn't VAT registered and the VAT registration number on the invoice is fake, the supplier can pocket the 20% ‘VAT’ charged. The problem for the customer is that they haven't really paid any input tax. If they include it on their VAT return and this is discovered during a compliance check, they will need to repay it to HMRC.

Until recently, the only verification means via HMRC was a tool that checked whether a VAT number was in a valid format - not whether it was genuine. The new number checker provides a real-time means of ensuring that a number is valid and gives the name and address of the business. The tool can be found here

Paul Newbold, Partner at Torgersens said; ‘This new facility will be very helpful to ensure the security of a business’s supply chain. It should be noted though that the VIES tool should still be used for EU-base suppliers.’

About the Author

Paul Newbold Image

Paul Newbold

Partner
After qualifying with KPMG where he gained significant audit experience, Paul joined Torgersens in 1991 and became the firm’s audit partner in 2000. Paul employs his broad range of financial skills to provide commercial and accounting advice to a range of owner-managed businesses in the independent retail, education and professional services sectors. He also has extensive experience dealing with charities, Registered Social Landlords and not-for-profit organisations and co-operatives.   Outside of work, Paul likes to visit Eastern France and South-West German and read novels by David Morrell, Michael Blake and Harper Lee. He also likes watching films, his favourite is The Shawshank Redemption.

To get in touch please e-mail paul.newbold@torgersens.com.

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