Maintain complete vat books for hassle free accounting

Once you have converted into a vat registered trader in the UK or perhaps 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 greater detail, and may 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 last twelve months of your business, although you could do so before reaching that vat threshold limit. After you have become a vat registered trader in the UK then you’ll need 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 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 dealings with assorted parties even if these were conducted in other countries, etc.

These records should also be summarized whenever 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 also the total vat amount collected against that sales invoice vatnumbers. 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. 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 visit your business premises and may want to look at all of your books of accounts to confirm certain doubts lingering in their minds. They might cross check vat invoices with all 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 would make a favourable impression with those vat officers as well as prevent any penalties from striking down your organization plus your reputation.

In case you have any problems to understand what exactly is vat then you go looking for the services of a capable vat agent that can assist you to create and maintain all books of accounts related to vat in a clear and methodical manner find out more. You will need to maintain books of accounts connected with vat for a duration of 6 years. Various vat schemes require different kinds of books and your vat agent could guide you on the right format for your business depending on your scheme and vat classifications of your goods and services.

Maintaining proper books of accounts will 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’ll definitely have to maintain complete vat books for trouble free accounting and auditing.