Maintain complete vat books for hassle free accounting

After you have turned into a vat registered trader in the UK or perhaps any other country that follows vat you then should maintain complete vat books for trouble free accounting. These books of accounts need to record and display each vat transaction in greater detail, and can be of great help if you are subjected to a vat audit.

In the UK you will have to go for vat registration upon completing 70,000 sterling pounds of taxable sales in the last twelve months of your business, even though you could do so before reaching that vat threshold limit. After you have turned into a vat registered trader in the UK then you will need to obey all applicable vat rules framed by HM Revenue and Customs department or hmrc vat department. While there is no set means of maintaining books of accounts especially for vat, you still vatverification.com have to be sure you store all details of vat paid and collected including invoice numbers, dates, vat rates, vat amounts, names and addresses of your respective dealings with various parties even though these were conducted in other countries, etc.

These records should also be summarized when you file regular vat returns on a yearly, quarterly or monthly basis, as decided by hmrc vat department. Your vat invoice too will specifically have to display your vat number, vat rate for each service or product, and the total vat amount collected against that sales invoice. All this data should also be mentioned in your sales books even as all purchase invoices will need to be summarized in the purchase books. Moreover, maintaining bank and cash books is mandatory for vat registered traders.

Maintaining such vat books on an up-to-date basis is extremely important since vat officers at hmrc might compare your vat returns or even your vat refunds and may choose to conduct a vat audit of your business. In such a case, vat officers might call at your business premises and may want to look at all of your books of accounts to confirm certain doubts lingering in their minds. They might cross check vat invoices with your sales books or request certain confirmations on specific vat transactions simply to confirm if they were indeed genuine ones. If all your books of accounts related to vat are in order then that would make a favourable impression with those vat officers and also prevent any penalties from striking down your business as well as your reputation.

In case you have any problems to understand what is vat then you certainly should go looking for the services of a good vat agent that can help you to create and maintain all books of accounts associated with vat in a clear and methodical manner. You will need to maintain books of accounts related to vat for a duration of 6 years. Various vat schemes require different types of books and your vat agent would be able to guide you on the right format for your business based on your scheme and vat classifications of your goods and services.

Maintaining proper books of accounts will help you to conduct your business in a clear and seamless manner. If you too have adopted vat in the UK then you will definitely need to maintain complete vat books for trouble free accounting and auditing.