Once you have converted into a vat registered trader in the UK or perhaps any other country that follows vat you then should maintain complete vat books for trouble free accounting https://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 UK you will have to opt for vat registration upon completing 70,000 sterling pounds of taxable sales in the previous twelve months of your business, although you can still do so before reaching that vat threshold limit. After you have turned into a vat registered trader in the United Kingdom 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 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 respective dealings with assorted 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 need to display your vat number, vat rate for every service or product, and the total vat amount collected against that sales invoice. All of this data should also be mentioned in your sales books even as 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 and even your vat refunds and may decide 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 ask for certain confirmations on specific vat transactions simply to confirm if they were indeed genuine ones. If all of your books of accounts pertaining to vat are typically in order then that will make a favourable impression with those vat officers and also prevent any penalties from striking down your business plus your reputation.
In case you have any problems in understanding what is vat then you should go looking for the expertise of a good vat agent that can help you to create and keep all books of accounts associated with vat in a clear and methodical manner more hints. You need to keep your books of accounts related to vat for a period 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 goods and services.
Maintaining proper books of accounts will help you to conduct your business in a clear and seamless manner. In case you too now utilize vat in the United Kingdom then you will definitely have to maintain complete vat books for trouble free accounting and auditing.