Vendor Onboarding Checklist

Collect the vendor's legal name, registration number and registered address

The legal name and registration number are what your books and tax filings must reference. A vendor who invoices under a trading name that differs from their registered entity creates reconciliation problems — and in some jurisdictions, invalidates the VAT deduction. Getting this right at onboarding means every invoice afterward is consistent.

Verify the vendor against a public business registry where available

A quick registry check confirms the vendor exists, is active, and is who they claim to be. This is the cheapest fraud prevention step available — and it catches fabricated vendors, shell companies, and expired registrations before a single payment is made.

Check whether the vendor appears on any sanctions or restricted-party lists

In many jurisdictions, doing business with a sanctioned entity carries legal and financial consequences — even unintentionally. A quick check at onboarding, especially for international vendors, is a standard compliance step that takes minutes and prevents a problem that cannot be undone after payment.

Collect the vendor's tax identification number and VAT registration details

The tax ID and VAT number determine how you report the vendor in your filings and whether you can deduct VAT on their invoices. Missing or incorrect tax details at onboarding means every invoice from that vendor is a potential tax compliance issue — discovered at filing time, when fixing it is expensive.

Collect bank details through a trusted channel — not from the invoice itself

Invoice-bank-detail fraud works because the victim trusts the invoice. Collecting bank details once, at onboarding, through a verified channel (a signed form, a phone call to a known number) means any change requested later by email is automatically suspect. This single step prevents the most damaging vendor-payment fraud.

Agree on payment terms, invoice format and delivery method before the first invoice

Ambiguity about payment terms — net 30 vs. net 60, early-payment discounts, currency — turns into disputes after the invoice arrives. Agreeing upfront, in writing, means both parties have the same expectation and the first invoice flows without negotiation.

Create a single vendor record containing all collected documents and details

A vendor record — registration, tax details, bank account, agreed terms, contact information — stored in one place means anyone in the business can answer a question about that vendor without hunting through emails. It also means the details survive staff turnover, which is when vendor knowledge is most often lost.

Set a reminder to review vendor details annually

Vendors change: they re-register, update bank accounts, change VAT status. A vendor onboarded correctly two years ago may have outdated details today. An annual review — even a brief one — catches changes before they cause a payment to go to a closed account or a tax filing to reference an expired registration.