BARRHEAD based businesses have been warned to be on their guard after a scam was uncovered in the area. The councils trading standards team have alerted companies after a business in Busby received a letter from a German based company, TVV Tele Vereichis Verlag GmbH, informing them that it had owned The UK Corporate Portal which had the VAT registrations of UK companies.

The letter implied that the local company had to supply its VAT registration number to them so that they could put it on their website.

Hidden in the letter was that this display would be in the form of an advert and they would charge �797 annually for three years and a fourth year is added unless terminated in writing.

Councillor Vincent Waters, Environment convener warned: "I would urge all local businesses to follow trading standards advice and ignore this letter if you receive it." Trading Standards officers have warned firms to be aware of other scams trying to catch them out and have told them to ignore any letters they receive from the German company.

Steve Fox, principal trading standards officer, said: "This is a scam on lots of levels. Not all businesses have to register VAT. In 2012 a company had to have a turnover in excess of �77,000. Companies that are liable will have VAT registration number but that is allocated by HMRC who keep a register of these numbers.

"There is no need to have the number registered elsewhere. The letter states that German law applies but why would a legitimate contract signed in the UK state that German law applies?

"Lastly the website does not exist so you would be paying for nothing. But if you did not pay any invoice then there would follow a letter threatening legal action in Germany. Of course no action would take place."