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Maintain complete vat books for trouble free accounting


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After you have converted into a vat registered trader in the United Kingdom or perhaps some other country that follows vat then you should maintain complete vat books for trouble free accounting Vat Verification. These books of accounts have to record and display each vat transaction in greater detail, and can be of great help if you’re subjected to a vat audit.

In the UK you’ll have to opt for vat registration upon completing 70,000 sterling pounds of taxable sales in the last twelve months of your business, even though you can still do so before reaching that vat threshold limit. Once you have become 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 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 if these were conducted in other countries, etc.

These details will also need to 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 need to display your vat number, vat rate for every service or product, 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 need 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 might choose to conduct a vat audit of your business. In such a case, vat officers might call at your business premises and would want to go over all your books of accounts to confirm certain doubts lingering in their minds. They might cross check vat invoices with all 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 typically in order then that would make a favourable impression with those vat officers as well as prevent any penalties from striking down your business plus your reputation.

In case you have any problems to understand what exactly is vat then you definitely should go in for the expertise of a good vat agent that can assist you to create and maintain all books of accounts associated with vat in a clear and methodical manner more. 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 can help you to conduct your business in a clear and seamless manner. If you too now utilize vat in the UK then you’ll definitely have to maintain complete vat books for hassle free accounting and auditing.