Businesses on the Island are being warned about a scam regarding VAT Registration numbers.

The Office of Fair Trading says an official-looking letter from a German company claims that as part of the changes to the EU economic package, obligating all companies to provide their VAT Registration Number, as a publisher of leading internet portals they are required to update their database.

The letter gives the impression that businesses are somehow obliged to provide the German company with their VAT Registration Numbers. The OFT stresses this is not the case.

It goes on to warn that completing the form attached to the letter could end up costing a company hundreds of pounds .. .as the small print states there will be a charge of ?797 a year for up to four years for the information provided to be published on a “Corporate Portal"

The OFT says the forms and letters should not be returned .. . unless you want to end up needlessly out of pocket.

Anyone wanting more information should contact the office on 686 500.