TAX experts believe that some companies may not be aware of changes to the VAT regime which affects firms that supply or source services from overseas companies.

The changes, which took effect on January 1, mean that international transactions will require the businesses involved to report the value of the service they are supplying to EU customers, stating the recipient or destination country.

According to PricewaterhouseCoopers, at Castle Donington, there is a strong possibility some firms in Derby may not yet be compliant.

PwC's VAT director Paul Jackson said: "The new package of measures is a significant change. Some companies may not yet have systems in place to capture the required data and risk a penalty as a result."