VAT Update from HMRC
August 2009
VAT number verification
The European Commission have enhanced their on-line service which allows taxpayers to check if a quoted VAT number is valid.
The on-line service has been updated to allow taxpayers to obtain a certificate to prove that they checked that a VAT registration number was valid at a given time and date. This system has been designed primarily to protect taxpayers who become innocently involved in a chain of fraudulent transactions such as carousel fraud.
The certificate will provide valuable evidence for a taxpayer to prove that they acted in good faith should HMRC challenge input tax recovery or seek payment of lost VAT.
The new on-line system will also be useful to businesses who zero-rate sales to businesses in other EU countries. Specifically in meeting one of the conditions for zero-rating which states that your customer must be VAT registered.
The on-line service is available at the following address:
http://ec.europa.eu/taxation_customs/vies/vieshome.do?selectedLanguage=EN
Making VAT payments
HMRC’s bank account details for VAT payments have changed with effect from 8 July 2009. This is part of an ongoing exercise by HMRC which involves moving its banking arrangements from the Bank of England to commercial banks.
HMRC is now using Citi Bank for electronic payments by BACS Direct, Internet/telephone banking and CHAPS.
HMRC’s new bank details are as follows:
Account name: HMRC VAT
Account number: 11963155
Sort code: 08 32 00
When making VAT payments it is important that taxpayers use their VAT registration number as the reference number to ensure payments are correctly credited to their VAT account. The VAT number should be used with no gaps to save unnecessary delays in processing the payment.
Whilst HMRC is working closely with banks to implement the new account details some banks may be unable to make the payment using the new account details.
HMRC will continue to process payments made using the old bank details for the time being. Taxpayers using the new banking details should ensure that all templates and instructions for online banking payments are updated for the change.
Bank Giro payments will also be changing and for the time being transactions will be handled by Natwest Bank. New Bank Giro books will be printed in due course. In the meantime, payments should be made as normal.
