Once you have turned into a vat registered trader in the UK or even in any other country that follows vat then you should maintain complete vat books for trouble free accounting www.vatverification.com. These books of accounts have to record and display each vat transaction in greater detail, and may be of great help if you’re put through a vat audit.
In the United Kingdom you’ll have to opt for vat registration upon completing 70,000 sterling pounds of taxable sales in the last one year of your business, even though you could do this before reaching that vat threshold limit. Once you have turned into a vat registered trader in the UK then you’ll have to obey all applicable vat rules framed by HM Revenue and Customs department or hmrc vat department. Although there is no set means of maintaining books of accounts especially for vat, you will still have to be sure that 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 assorted parties even though 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 service or product, and also the total vat amount collected against that sales invoice. All of this data should also be mentioned in your sales books whilst all purchase invoices will have to be summarized in the 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 very important since vat officers at hmrc might compare your vat returns and 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 would want to look at all of your books of accounts to confirm 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 simply to confirm if they were indeed genuine ones. If all your books of accounts pertaining to vat are typically in order then that will create a favourable impression with those vat officers as well as prevent any penalties from striking down your business plus your reputation.
If you have any problems to understand what exactly is vat then you go in for the services of a good vat agent that can assist you to create and keep all books of accounts related to vat in a clear and methodical manner full article. You will need to keep your 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 assist you on the right format for your business depending on your scheme and vat classifications of the 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 have to maintain complete vat books for hassle free accounting and auditing.