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Maintain complete vat books for hassle free accounting


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After you have turned into a vat registered trader in the United Kingdom or even in any other country that follows vat then you should maintain complete vat books for trouble free accounting. These books of accounts have to record and display each vat transaction in detail, and can be of great help if you’re put through a vat audit.

In the UK you will have to opt for vat registration upon completing 70,000 sterling pounds of taxable sales in the previous one year of your business, even though 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 need to obey all applicable vat rules framed by HM Revenue and Customs department or hmrc vat department. While there is no set way of maintaining books of accounts especially for vat, you will still have to be sure that 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 though these were conducted abroad, etc.

These details will also need to be summarized whenever you file regular vat returns on a 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 every product or service, and also the vat check total vat amount collected against that sales invoice. All of this data will also need to be mentioned in your sales books whilst all purchase invoices will need 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 or even your vat refunds and may choose to conduct a vat audit of your business. When this happens, vat officers might visit your business premises and may want to go over all your books of accounts to confirm certain doubts lingering in their minds. They may cross check vat invoices with all your sales books or request certain confirmations on specific vat transactions only to confirm if they were indeed genuine ones. If all of your books of accounts related to vat are typically in order then that would create a favourable impression with those vat officers and also prevent any penalties from striking down your organization as well as your reputation.

In case you have any problems to understand what is vat then you certainly should go in for the expertise 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. You will need to maintain books of accounts related to vat for a duration of 6 years. Various vat schemes require different kinds 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 can help you to conduct your business in a clear and seamless manner. If you too now utilize vat in the United Kingdom then you will definitely need to maintain complete vat books for hassle free accounting and auditing.