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Following the UK's exit from the European Union, VAT registration details of UK companies are no longer maintained on the VAT Information Exchange System (VIES).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