Maintain complete vat books for trouble free accounting

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. These books of accounts need to record and display each vat transaction in greater detail, and can be of great help if you are 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 this before reaching that vat threshold limit. Once you have become 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 way of maintaining books of accounts specifically for vat, you will still need to ensure 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 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 have to display your vat number, vat rate for each service or product, and the total vat amount collected against that sales invoice www.vatnumbers.com. All of this data will also need to be mentioned in your sales books whilst all purchase invoices will have to be summarized in the purchase books. In addition, maintaining bank and cash books is required 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 visit your business premises and may want to look at all of your books of accounts to verify 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 related to vat are typically in order then that will make a favourable impression with those vat officers as well as 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 should go looking for the expertise 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 more info. You need to maintain books of accounts connected with vat for a period of 6 years. Various vat schemes require different kinds of books and your vat agent could assist you about the right format for your business depending on your scheme and vat classifications of your services and goods.

Maintaining proper books of accounts will help you to conduct your small business in a clear and seamless manner. If you too now utilize vat in the United Kingdom then you’ll definitely have to maintain complete vat books for hassle free accounting and auditing.