Sorry to go ever so slightly off topic here...but in Australia we have a GST (Goods and Services Tax) which is currently @ 10%, and I believe it is similar to the UK's VAT. Any business here has the option to be GST or non GST compliant, meaning that if a business is GST compliant, they may claim the GST paid on any purchase or goods purchased. If a business is not GST compliant, they are not able to claim the tax paid. This compliance is checked through the use of an Australian Business Number (ABN), which links directly back to the Tax Dept.
GST is applied to all services or products, with the exception being certain food stuffs, Non profit Organisations and deemed necessary items.
Say for example a business buys 10 Dell computers at $1900.00
10x1900=$19,000
10% of 19,000 = 1900 (GST)
So the total paid by the business is $20,900. (purchase price + GST)
The business can now claim that $1900 back from the Tax Dept, when submitting their quarterly Business Activity Statement (BAS) as long as they are GST compliant. I presume this is a very similar situation in the UK? The Tax Dept in the UK would/should have a record of all business' who are able to claim the VAT, or are VAT exempt.
PV