Maintain complete vat books for trouble free accounting

After you have turned into a vat registered trader in the United Kingdom or perhaps some other country that follows vat you then should maintain complete vat books for trouble free accounting http://vatverification.com. These books of accounts need to record and display each vat transaction in detail, and may be of great help if you are subjected to 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 previous one year 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 UK then you will 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 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 a 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 product or service, and the total vat amount collected against that sales invoice. All of this data will also need to be mentioned in your sales books whilst all purchase invoices will need to be summarized in your 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 very important since vat officers at hmrc might compare your vat returns or even your vat refunds and may 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 may 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 related to vat are typically in order then that will create a favourable impression with those vat officers as well as prevent any penalties from striking down your organization plus your reputation.

If you have any problems to understand what is vat then you definitely go looking for the services of a good vat agent that can assist you to create and keep all books of accounts related to vat in a clear and methodical manner more help. 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 could assist you on the right format for your business depending on your scheme and vat classifications of your services and goods.

Maintaining proper books of accounts can help you to conduct your business in a clear and seamless manner. In case you too now utilize vat in the UK then you will definitely have to maintain complete vat books for trouble free accounting and auditing.