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How to verify a foreign supplier: VIES, registries, red flags

Before the first deal with a new counterparty, confirm three things: the company exists in an official register, the person you deal with can act for it, and the bank account you are asked to pay belongs to that company. Most of these checks are free and take minutes. Below is where to look in the EU, in Poland and in the Philippines as an example of a non-EU market.

By Hiram Trade Editorial Desk

Published

6 min read

Step 1: check the EU VAT number in VIES

VIES is the European Commission's service for checking whether an EU VAT number is valid for cross-border transactions. You enter the country code and number and get a valid or invalid answer. Some Member States also return the registered name and address; others do not.

What VIES gives you:

  • confirmation that the number exists and is registered for intra-EU trade;
  • evidence of due diligence for intra-EU supplies (keep the printout or the consultation number);
  • a way to spot mismatches, such as a number belonging to a different company from the one on the invoice.

What it does not give you: proof that you are talking to someone from that company, or that the bank account belongs to it.

Step 2: the Polish VAT white list (Polish counterparties)

When buying from or selling to Polish companies, the Polish VAT taxpayer list ("white list") kept by the head of the National Revenue Administration shows VAT status, tax and statistical numbers, court register number, address, representatives and the bank accounts the taxpayer has reported.

For Polish buyers this has direct tax consequences: paying for a transaction worth more than PLN 15,000 to an account not on the list can mean the expense is not tax-deductible and the payer becomes jointly liable for the supplier's VAT arrears on that transaction, unless a ZAW-NR notice is filed with the tax office within 7 days of ordering the transfer.

Foreign suppliers are generally not on the white list, so their accounts must be verified in other ways (see step 5).

Step 3: company registries

  • Poland, KRS (National Court Register) covers companies, foundations and associations. The Ministry of Justice search shows the current extract with the board, rules of representation, proxies (prokurent) and share capital. Check whether the signatory can sign alone or only jointly.
  • Poland, CEIDG covers sole traders: registration status, address, start date, any suspension.
  • Other EU countries have their own official business registers; use the government source rather than a paid intermediary where the official one is free.

Compare the register data with the pro forma invoice, email signature and website. Differences in name or address call for questions.

Step 4: Philippine registries

For Philippine counterparties:

  • SEC (Securities and Exchange Commission) registers corporations and partnerships. The "Check with SEC" portal shows whether an entity is registered and its status.
  • DTI (Department of Trade and Industry) registers business names of sole proprietors through BNRS. The search only works for the exact business name.
  • Some sectors have additional registration. The Philippine Coconut Authority, for example, maintains registrations of coconut-based business entities, including oil manufacturer-exporters.

EU buyers should ask Philippine suppliers for their SEC or DTI registration details upfront and check them against the official portal. Philippine exporters can speed things up by sending these details, plus their EU buyer references, with the first quote.

Step 5: bank account and contact person

This is where most fraud happens. Rules of thumb:

  • the account on the invoice should belong to the contracting company and sit in the country where it is registered or operates; an account in a third country needs an explanation;
  • confirm any change of bank details by phone on a number you already had, never via the email that requested the change;
  • check that the email domain matches the company website and is not a free mailbox;
  • for the first large order, consider a smaller trial shipment.

See our guide to B2B trade fraud for more.

Step 6: sanctions

Screen the company, its owners and its representatives against the EU, UN, UK and US (OFAC) sanctions lists. Our sanctions screening guide explains how.

Red flags

SignalWhat to do
Company registered weeks ago but offering large volumesask for references and shipping history, start small
Address is a virtual office or does not existcheck imagery, ask for the plant address
Name almost identical to a known producercompare the registration number and domain with the original
Account held by an individual or in another countrystop payment, get a written explanation
Price well below market plus time pressureverify specification and production capacity
Refuses video calls or visitsask for an independent inspection
Documents with mixed fonts and no reference numbersconfirm with the issuer directly

Keep a record

Log the date and result of each check: VIES screenshot, white list confirmation on the day of payment, register extract, sanctions screening result. In a tax audit or dispute, this shows you acted with due care.

Verification on Hiram

On Hiram, companies with an EU VAT number are checked in VIES, and Polish companies also against the Polish VAT white list and KRS; each profile shows the verification level actually reached. Companies outside the EU are not checked in registries automatically. All counterparties are screened against EU, UN, UK and US sanctions lists. That is a useful starting point, not a substitute for your own checks on bank details, contacts and product quality before the first payment.

Checklist

  • VAT number valid in VIES (confirmation saved).
  • Entry in the home-country register matching the documents.
  • Signatory has authority to represent the company.
  • For Polish companies: account on the white list on the payment date.
  • Account belongs to the counterparty and sits in a logical country.
  • Sanctions screening of the company and its owners.
  • Any change of details confirmed through a separate channel.

On the Hiram market, check each counterparty's verification level on its profile before you rely on it.

Sources

This article is for information only and is not legal, tax or customs advice. Rules and rates change: check the current official sources or consult an adviser before you decide.

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