As per UK legislation, it is not allowable to carry out a business in the UK or operate a company if the threshold has crossed a certain limit of VAT registration. It is equally imperative to get your registered for VAT to avoid troubles and paying penalties against the law. None of you wants to go through any of such hard circumstances. It may sound difficult, how to check if a company is VAT registered. However, you need to stop worrying now as we have gathered everything you need to know about checking the validity of a VAT registration number.
How to Check if a Company is VAT Registered?
There are multiple ways to identify whether a business is registered for VAT or not. Let’s take an example of a business that is about to deal with a new customer, a new supplier, or dreams to expand the business. Now the business owner needs to take a wise decision and verify if the VRN (Value added tax registration number) provided by the new supplier is practically valid or not. Professionally there are two methods suggested for this purpose.
The first is to get in touch with the HMRC VAT helpline and the second is to take help from the digital platform known as VIES (VAT Information Exchange System). Wondering what is VIES? Let’s find out more about it in the explanation given below.
VAT Information Exchange System (VIES) – A Beneficial Digital Platform
Among several other ways to find out whether a company is VAT registered or not, the digital platform with the name of an online VAT number validation service can help you as well. This platform is a good initiative of the (VIES) which is known as the VAT Information Exchange System. If you aim to check the supplier VAT registration number is valid practically, this will check the validity for you. This could be checked for any business that is in the EU.
In the UK, this platform uses the real data that is fed by the members of the state VAT system. There is no doubt that the provided validity information checked through this portal is always in updated form. Are you wondering why was such a portal set up in the UK? The reason for making such a portal is to avoid the bad effects of the increasing ratio of carousel frauds. There have been several cases observed in which the business and individuals are trapped by deceitful transactions. However, you can seek professional help to go through the process. You will get the confirmation that your supplier has provided you with the valid information. Now you are clear to go ahead with the new suppliers and customers with a clear mind.
Get In Touch With the VAT Helpline of HMRC
The popular method to check the validity of a VAT registration number is to get in touch with the HMRC Helpline number. It is an easy and quick way to get your queries answered. This service is available for you during the hours of 8:00 AM till 8:00 PM and seven days a week. You have to consider a few limitations when you are using this method to check the validity of a registration number.
The limitation includes the following listed points:
- If you require the validity of a VAT number, HMRC will only be able to provide the information if that business is registered in the UK.
- The limitation on the contact hours that are mentioned above as well, is a little challenging factor for the business. As you will be unable to contact them at the needed time.
- It is a little frustrating when you require a number validation but you have to wait for the working hours to talk to one of the staff members.
Importance of VAT Registration Number
If you are carrying out a business in the UK and you wish to claim the VAT on your supplies, the first important thing is to prove by providing a VAT applicable invoice sent by the seller. There are certain requirements that must be part of this VAT invoice. These include the payment date, narrative about the offered services and products, value added tax registration number of the business, invoice number, address and name of the company.
Before your business decides to claim the VAT, this should be ensured that all the above-mentioned details are a clear part of the invoice. There should be a verification of the VAT number sent by the supplier. This is an important practice when there is a huge amount of VAT that you are claiming. If the suggested points are not focused, your reclaiming VAT request can be declined by HMRC. You can even struggle with the unfavourable consequences.
The Bottom Line
Now that you have gathered a fair amount of information about how to check if a company is VAT registered, we can say that the discussed methods check the validity of a VAT registration number are quick and easy other than a few exceptions. However, these can be followed on your own and you do not even need to go to a professional for that. The digital platform is more convenient because of the non-stop availability. On the other hand, the HMRC helpline, due to the limitation of working hours, people find it a little challenging.
Speaking to one of the most professional team members at Accotax if you are stuck with understanding the VAT registration process will be helpful.
Disclaimer: The information provided in this blog about how to check if a company is VAT registered includes its text and graphics in general. This does not intend to disregard any of the professional advice.