Why Verify VAT Numbers?
Verifying VAT number is not just a formality; it is a necessary step to ensure that a company is properly registered and authorized to conduct business. This verification process helps businesses avoid potential pitfalls such as dealing with fraudulent entities or facing penalties from tax authorities like HMRC. By using tools like VIES (VAT Information Exchange System), companies can easily check the validity of VAT numbers and ensure that their business partners are legitimate.
What is a VAT Number?
A VAT number is a unique identifier assigned to businesses that are registered for VAT. This number plays a crucial role as it is used in various transactions, including issuing invoices and ensuring tax compliance. For companies, verifying VAT numbers is an essential step to confirm that their business partners are properly registered and authorized to conduct business.