Once you have converted into a vat registered trader in the United Kingdom or even in some other country that follows vat then you should maintain complete vat books for hassle free accounting www.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 are subjected to a vat audit.
In the United Kingdom you’ll have to go for vat registration upon completing 70,000 sterling pounds of taxable sales in the previous twelve months of your business, even though 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 need to obey all applicable vat rules framed by HM Revenue and Customs department or hmrc vat department. While there is no set means of maintaining books of accounts especially for vat, you still 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 assorted parties even though they were conducted abroad, etc.
These records will also need to be summarized when you file regular vat returns on a 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 also the total vat amount collected against that sales invoice. All of this data should also be mentioned in the sales books whilst all purchase invoices will need to be summarized in your purchase books. Moreover, 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 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 your books of accounts to verify certain doubts lingering in their minds. They might cross check vat invoices with your sales books or request 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 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 in understanding what exactly is vat then you 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 next page. 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 guide 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 will help you to conduct your 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.