Maintain complete vat books for hassle free accounting

After you have turned 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 hassle free accounting. 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 UK 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, even though you can still do this before reaching that vat threshold limit. After 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 way of maintaining books of accounts specifically for vat, you will still need to ensure 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 have to display your vat number, vat rate for each service or product, and also the total vat amount collected against that sales invoice https://vatnumbers.com. All this data will also need to be mentioned in your sales books even as all purchase invoices will have 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 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. When this happens, vat officers might call at your business premises and may want to go over all your books of accounts to verify certain doubts lingering in their minds. They might cross check vat invoices with your sales books or request certain confirmations on specific vat transactions only to confirm if they were indeed genuine ones. If all your books of accounts pertaining 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.

If you have any problems to understand what is vat then you definitely should go looking for the expertise of a good vat agent that can assist you to create and maintain all books of accounts related to vat in a clear and methodical manner click here. You 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 the services and goods.

Maintaining proper books of accounts can 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 hassle free accounting and auditing.