How to find out or check if a company is VAT registered

To check if a company is VAT registered, it’s essential to know the UK threshold for VAT registration, which is currently £90,000 in taxable turnover. Businesses exceeding this amount must register for VAT and display their VAT number on invoices. This is important for maintaining transparency and compliance in business transactions.

Using a VAT checker can simplify the process of finding a company’s VAT number. You can easily verify their registration status online, ensuring you only engage with compliant suppliers. Knowing how to find a VAT number protects your business from potential penalties and fosters trust in your business relationships.

In this blog, we will explore how to check if a company is VAT registered using a VAT checker and guide you on how to find a VAT number easily.

What is a VAT registration number?

A VAT registration number is a unique identifier issued by HMRC to UK businesses that register for VAT, either voluntarily or because their turnover exceeds the threshold. This number typically starts with "GB" followed by nine digits, ensuring it is easily identifiable.

To find a VAT number, check invoices, as registered businesses must display their VAT number on all official documents. You can also visit the company’s website or use HMRC’s online checker for verification. If these methods fail, contacting the business directly is recommended.

Understanding a company’s VAT status is crucial for compliance and reclaiming VAT, making it essential for businesses to verify this information promptly.

What does a VAT number look like?

For businesses based in England, Scotland or Wales, a UK VAT number contains 11 characters – the letters ‘GB’ followed by 9 numbers. For example, GB 123 4567 89.

Businesses in Northern Ireland have VAT numbers beginning with the letters ‘XI’ instead of ‘GB’. For example, XI 123 4567 89.

A VAT number is a unique identifier assigned to businesses registered for Value Added Tax, consisting of 2-12 alphanumeric characters. The first two characters indicate the country of registration, with EU countries using two-letter codes. To find a VAT number, check invoices, visit the company’s website, or use online resources like HMRC’s VAT checker. Knowing how to find a VAT number is essential for compliance and ensuring valid transactions in your business dealings. Note the following are not part of the EU VAT area:

• Andorra
• The Channel Islands
• Gibraltar
• Mount Athos
• San Marino
• Vatican City

Importance of Checking VAT Registration

Checking if a company is VAT registered is essential for various reasons. It ensures compliance with tax regulations and helps protect your business from fraud. Here are some key points highlighting the importance:

• Legal Compliance: Ensures you deal with businesses that are legally registered for VAT, avoiding potential legal issues.
• Fraud Prevention: Verifying a VAT number helps prevent fraudulent activities, safeguarding your financial transactions.
• Accurate Invoicing: Knowing a company’s VAT status ensures that VAT is correctly applied on invoices, which is crucial for accurate accounting.
• Reclaiming VAT: If you are VAT registered, you can reclaim VAT paid on purchases from VAT-registered suppliers. This can significantly reduce your tax burden.
• Building Trust: A valid VAT registration enhances credibility with customers and suppliers, demonstrating compliance and professionalism.

To check if a company is VAT registered, you can use a VAT checker provided by HMRC or call their helpline. Always ensure to check the VAT number before engaging in business transactions to maintain compliance and protect your interests.

Do all businesses have VAT registration numbers?

Not all businesses have a VAT number; only those registered for VAT will possess one. A VAT registration number is essential for identifying your business in VAT-related transactions. If your business is VAT registered, you must display your VAT number on:

• All customer invoices
• Credit notes and receipts
• Your business website

You will also need this number when submitting VAT Returns to HMRC, paying or reclaiming VAT, and dealing with specific suppliers. Additionally, when purchasing from VAT-registered companies in the EU, providing your VAT number allows them to zero-rate the VAT on your order. Ensuring compliance with these requirements not only streamlines your operations but also enhances trust with customers and suppliers alike.

When you will use your VAT registration number

If your business’s taxable turnover exceeds the VAT registration threshold of £90,000, you must register for VAT with HMRC. If your turnover is below this threshold, you can opt for voluntary registration, which can be advantageous if you frequently pay VAT on supplies or anticipate exceeding the threshold soon. A VAT registration number is essential for various business activities.

After registering, you’ll receive a VAT registration certificate from HMRC. Safeguard this document and your VAT number, as you’ll need them for:

• Creating a VAT online account with HMRC
• Completing quarterly VAT returns
• Paying your quarterly VAT bill
• Contacting HMRC regarding your VAT account
• Reclaiming VAT on business purchases
• Issuing VAT invoices to customers
• Setting up accounts with suppliers
• Providing information to your accountant or tax advisor

To verify if a company is VAT registered, use a VAT checker tool. Knowing whether a company is VAT registered is crucial for ensuring compliance and understanding potential costs associated with transactions. Registering for VAT not only helps in reclaiming taxes but also prepares your business for future growth.

How to find a business VAT number

To find a business VAT number, you can follow several straightforward methods. A VAT number is crucial for businesses that are VAT registered, as it is required for invoicing and tax returns. Here’s how you can easily find a business VAT number:

1. Check Invoices: If you have received an invoice from the business, the VAT number should be displayed on it. Look for a unique 9-digit number prefixed by "GB".
2. Company Website: Many businesses list their VAT registration number on their website, often in the "About Us" or "Contact" sections.
3. HMRC Database: You can use the HMRC’s online services to check if a company is VAT registered. This is a reliable way to verify the VAT status of any business.
4. VAT Checker Tools: There are various online VAT checker tools available that allow you to input a company name or number to retrieve its VAT registration details.
5. Contact the Business Directly: If you cannot find the VAT number through other means, simply reach out to the business and request their VAT registration number.

Remember, having a valid VAT number is essential for compliance in business transactions. Always ensure that you check the VAT number before proceeding with significant purchases or contracts.

• Check invoices for the VAT number.
• Visit the company’s website.
• Use HMRC’s online services.
• Employ online VAT checker tools.
• Contact the business directly for confirmation.

By following these steps, you can easily find a business VAT number and ensure your transactions comply with tax regulations.

Why it’s important to check a VAT number

To ensure you’re reclaiming VAT correctly, it’s essential to check a VAT number before submitting your VAT return. An invalid VAT number can invalidate your invoice, preventing you from reclaiming the VAT paid and potentially leaving you financially exposed. Mistakes happen, but verifying a VAT registration number can prevent costly errors, especially when dealing with new suppliers who might misuse another company’s VAT number.

Businesses in the UK can only reclaim VAT if they possess a valid VAT invoice, which must include specific details:

• Business name and address
• Invoice number
• Description of goods and services
• Total cost and VAT amount
• Supplier’s VAT registration number

Performing a quick check is straightforward. You can use the HMRC VAT checker online or contact their helpline for assistance. If you find discrepancies or if the supplier refuses to provide their VAT number, it’s a red flag that warrants further investigation.

Always verify that a company is VAT registered to protect your business from fraud and ensure compliance with tax regulations. Taking these steps helps maintain good governance and safeguards your financial interests.

How do I check a VAT number is valid?

If youre dealing with a new supplier, we recommend you use one or more of the steps below. To check UK VAT numbers:

1. Check the number is 9 digits long (if a UK supplier)
2. Check online using HMRC website to check a UK VAT number.
3. Call the HMRC VAT helpline on 0300 200 3700.

Have your own business VAT number to hand to use the services above.

However, there are certain limitations with using the methods above. Firstly, HMRC can only provide verification on the VAT number for businesses registered in the UK and their VAT helpline is only open during working hours.

Checking EU VAT numbers online using the VAT Information Exchange System (VIES)

To check a VAT number, use the VIES VAT Validation Service for EU and Northern Ireland businesses. If the VAT registration number appears invalid, confirm the details with the company to ensure accuracy. Notify them of any discrepancies so they can address potential issues.

• Use VIES for validation
• Contact the company for the correct VAT number
• Ensure compliance with VAT regulations

Verifying that a company is VAT registered protects your business from tax complications and ensures you can reclaim any VAT paid. Always double-check VAT numbers to maintain compliance.

What to Do if a Company is Not VAT Registered

If a company is not VAT registered, it may not be charging VAT on its sales. This can impact your business, especially if you need to reclaim VAT on purchases. Here’s what you can do:

• Confirm the Company VAT Number: Use a VAT checker to ensure you have the correct company VAT number. This helps avoid misunderstandings.
• Contact the Company: Reach out to the business directly. They may not be aware of their obligation to register for VAT, especially if their turnover exceeds the threshold.
• Consider Your Options: If you frequently deal with this company, assess whether it’s worth continuing the relationship if they cannot provide a valid VAT registration.
• Stay Compliant: Ensure your own business complies with VAT regulations. If you are unsure about any aspect, consult a tax professional for guidance.

Understanding a company’s VAT status is crucial for maintaining compliance and ensuring that you can reclaim any eligible VAT on your purchases. Always check a company VAT number before proceeding with transactions.

How dns accountants can help

Here at dns accountants we offer a wide range of VAT service and advice including:

• VAT registration & VAT returns service
• VAT computations
• Handling correspondence with HM Revenue and Customs (HMRC)
• Reclaim VAT

We support thousands of VAT registered businesses across the UK so, for all your VAT needs, call our team or book a consultation today

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