Maintain complete vat books for hassle free accounting

Once you have turned 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 need 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’ll have to opt for vat registration upon completing 70,000 sterling pounds of taxable sales in the last twelve months of your business, although you can still do this before reaching that vat threshold limit. After you have turned into 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. Although there is no set means of maintaining books of accounts especially for vat, you will still www.vatverification.com 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 dealings with various parties even though they were conducted abroad, etc.

These records should also 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 every service or product, and also the total vat amount collected against that sales invoice. All this data will also need to be mentioned in the sales books whilst 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 extremely important since vat officers at hmrc might compare your vat returns and even your vat refunds and might decide to conduct a vat audit of your business. When this happens, vat officers might call at your business premises and would want to go over 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 request certain confirmations on specific vat transactions only to confirm if they were indeed genuine ones. If all your books of accounts related 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 plus your reputation.

If you have any problems in understanding what exactly is vat then you should go looking for the expertise of a capable vat agent that can assist you to create and maintain all books of accounts associated with vat in a clear and methodical manner. You 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 would be able to 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 can help you to conduct your small business in a clear and seamless manner. If you too have adopted vat in the United Kingdom then you’ll definitely need to maintain complete vat books for hassle free accounting and auditing.