Maintain complete vat books for hassle free accounting

After 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 hassle free accounting vatverification.com. These books of accounts need 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 United Kingdom you’ll have to opt for vat registration upon completing 70,000 sterling pounds of taxable sales in the previous twelve months of your business, even though you could do so before reaching that vat threshold limit. After you have turned into a vat registered trader in the United Kingdom 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 specifically for vat, you still have to be sure you store all specifics of vat paid and collected including invoice numbers, dates, vat rates, vat amounts, names and addresses of your dealings with assorted parties even if they were conducted in other countries, etc.

These details 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 every service or product, and the total vat amount collected against that sales invoice. All this data should also be mentioned in your 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 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 verify certain doubts lingering in their minds. They might cross check vat invoices with your sales books or ask for certain confirmations on specific vat transactions only to confirm if they were indeed genuine ones. If all of your books of accounts pertaining to vat are in order then that would create a favourable impression with those vat officers and also prevent any penalties from striking down your business as well as your reputation.

In case you have any problems to understand what exactly is vat then you certainly should go in for the expertise of a good vat agent that can help you to create and maintain all books of accounts related to vat in a clear and methodical manner check my reference. 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 assist you on the right format for your business based on your scheme and vat classifications of your services and goods.

Maintaining proper books of accounts will help you to conduct your 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 hassle free accounting and auditing.