Maintain complete vat books for trouble free accounting

After you have converted into a vat registered trader in the United Kingdom or even in some other country that follows vat you then should maintain complete vat books for hassle free accounting http://vatverification.com. These books of accounts have to record and display each vat transaction in greater detail, and can be of great help if you're put through a vat audit.

In the United Kingdom you will have to go for vat registration upon completing 70,000 sterling pounds of taxable sales in the previous twelve months of your business, although you could do so before reaching that vat threshold limit. Once you have become a vat registered trader in the United Kingdom then you will have to obey all applicable vat rules framed by HM Revenue and Customs department or hmrc vat department. Although there is no set way of maintaining books of accounts especially for vat, you still need to ensure you store all specifics of vat paid and collected including invoice numbers, dates, vat rates, vat amounts, names and addresses of your respective dealings with assorted parties even if they were conducted in other countries, etc.

These records will also need to be summarized when you file regular vat returns on the yearly, quarterly or monthly basis, as decided by hmrc vat department. Your vat invoice too will specifically need to display your vat number, vat rate for each product or service, and the total vat amount collected against that sales invoice. All this data should also be mentioned in the sales books even as all purchase invoices will have to be summarized in your purchase books. In addition, 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 visit your business premises and may want to go over all your books of accounts to verify certain doubts lingering in their minds. They may cross check vat invoices with your sales books or ask for certain confirmations on specific vat transactions only to confirm if they were indeed genuine ones. If all of your books of accounts pertaining to vat are typically in order then that will make a favourable impression with those vat officers and also prevent any penalties from striking down your organization as well as your reputation.

If you have any problems in understanding what is vat then you go looking for the services of a good vat agent that can help you to create and keep all books of accounts related to vat in a clear and methodical manner visit this link. You will need to maintain books of accounts related to vat for a period of 6 years. Various vat schemes require different types of books and your vat agent would be able to assist you about the right format for your business depending on your scheme and vat classifications of the services and goods.

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