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Checking VAT numbers

2nd August 2016

HMRC are warning businesses to protect themselves from VAT fraud in their supply chains.  Businesses are only allowed to reclaim VAT if that VAT was correctly charged by the supplier. If a business becomes caught up in a supply chain where there is fraudulent evasion of VAT, and the business knew, or should have known that the fraud occurred, the VAT will not be recoverable.  

There is a particular problem in the sector involving the buying of labour from labour providers such as gang-masters and employment agencies.  HMRC recommend that the business who is the end user of the labour should ask the labour supplier to provide a copy of their VAT registration and incorporation certificates before taking on any workers.

The supplier’s VAT registration number can be checked for authenticity, and whether it belongs to the particular business, by ringing the HMRC Coventry office on 03000 538254. This number can only be used to check VAT details of labour providers, and not for other suppliers.

If you have any questions regarding the above and would like to get in touch, please call us on 01634 846233.

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Checking VAT numbers
HMRC are warning businesses to protect themselves from VAT fraud in their supply chains. Businesses are only allowed to reclaim VAT if that VAT was correctly charged by the supplier.