How to Check if a Company is VAT Registered

It might be hard for a business to find out if its business partner is VAT Registered or not. There are two ways for a business to check if the value-added tax registration number (VRN) given by a new customer or supplier is real: Businesses can either call the VAT Helpline run by HM Revenue and Customs (HMRC) or use the online VAT Information Exchange System (VIES), which is run by the European Commission. Here in this blog, we will discuss How to Check if a Company is VAT Registered. Let’s try to figure out what these mean.

How to Check if a Company is VAT Registered

There are two methods that a company can use to verify the validity of the value-added tax registration number (VRN) that has been provided by a potential new client or supplier. Calling the VAT Helpline, which is managed by HM Revenue and Customs (HMRC), or using the online VAT Information Exchange System (VIES), which is managed by the European Commission, are the two options available to businesses.

Calling the HMRC VAT Helpline

Businesses can call the HM Revenue and Customs (HMRC) VAT Helpline at 0300-200-3700 to find out if a VAT registration number is valid or not (the call can be made anytime between 8am and 8pm throughout the week). But there are some things that can’t be done with this method. First of all, HMRC can only confirm a business’s VAT number if it is registered in the UK.

Businesses in the UK can also have trouble with the VAT Helpline because it is only open during certain times. There may be times when the business wants to ask about the VAT number outside of the helpline’s working hours, or it may take a while to talk to a member of the staff.

Online VAT Information Exchange System (VIES)

In addition to calling the HMRC VAT helpline, businesses in the UK can use the value-added tax (VAT) Information Exchange System’s online VAT number validation service (VIES). The European Commission runs the VIES portal, which helps a business check if a VAT registration number for any business in the EU is valid. The VIES portal uses real-time data feeds from the VAT systems of all member states in the UK. This means that the information it gives is always up to date. The main reason the VIES service was made was to fight the growing threat of “carousel fraud,” in which innocent people and businesses in the UK get caught in a chain of fraudulent deals.

When a company goes to the VIES website, they can choose from the drop-down menu (member-state & VAT number and requester member-state & VAT number). The business will give information about the country where it is located, and then it will put in the VAT registration number that needs to be checked. The site will then tell the business if the number works or not. “Businesses can confirm the legality of a VAT number issued by any Member State by selecting the Member State from the drop-down menu and then entering the VAT number to be checked,” says the VIES portal. If it is a valid VAT registration number, the VIES portal will confirm it and give the business’s name and registered office.

Finding out information about a business

Also, there is a fee of £1 for business documents like annual returns, annual reports, company accounts, and confirmation statements that are related to the business. In the UK, a business will have to sign up to get these documents. Businesses in the UK can either pay with a credit or debit card or through PayPal.

Why do you need a VAT registration number?

In the UK, businesses can only get back VAT on supplies if the seller gives them a valid VAT invoice. On a valid VAT invoice, there should be the name and address of the business, an auto-generated unique invoice number, the company or business’s value-added tax (VAT) registration number, a description of the goods or services offered, and the date of payment (creditor turnover period). Before claiming back the VAT, a company or business should make sure that all of the above details are on the invoice. It is also a good idea to check the supplier’s VAT number, especially when a business wants to get a lot of VAT back. Businesses that don’t follow the rules may have trouble; HMRC can refuse the request to get the VAT back.

VAT thresholds

According to UK law, a company can’t run a business in UK if its VAT-taxable turnover is more than a certain amount, which is £85,000 for VAT registration. In the table below, you can find out more about these limits:

Circumstance	Threshold
VAT registration	More than £85,000
Registration for distance selling into the UK	More than £70,000
Registration for bringing goods into the UK from the EU	More than £85,000
Deregistration threshold	Less than £83,000
Completing simplified EC Sales List	£106,500 or less and supplies to EU countries of £11,000 or less

VAT accounting scheme thresholds

VAT accounting scheme	Threshold to join scheme	Threshold to leave scheme
Flat Rate Scheme	£150,000 or less	More than £230,000
Cash Accounting Scheme	£1.35 million or less	More than £1.6 million
Annual Accounting Scheme	£1.35 million or less	More than £1.6 million

Note: Please note that the information provided on How to Check if a Company is VAT Registered is for general informational purposes only and is not intended to be comprehensive or to constitute professional advice. For accurate and up-to-date information, please visit the official website of HMRC.