Once 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 Vatverification.com. These books of accounts need to record and display each vat transaction in greater detail, and may be of great help if you are put through 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, although you could do this before reaching that vat threshold limit. Once 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 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 respective dealings with various parties even though these were conducted abroad, etc.
These records will also need to 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 each service or product, and also the total vat amount collected against that sales invoice. All this data should also be mentioned in your sales books even as 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 might choose to conduct a vat audit of your business. In such a case, vat officers might call at your business premises and may want to go over 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 request certain confirmations on specific vat transactions simply to confirm if they were indeed genuine ones. If all of your books of accounts related to vat are in order then that would make a favourable impression with those vat officers and also prevent any penalties from striking down your organization as well as your reputation.
In case you have any problems to understand what exactly is vat then you should go in for the expertise of a good vat agent that can assist you to create and maintain all books of accounts associated with vat in a clear and methodical manner full article. You will need to maintain books of accounts related to vat for a period of 6 years. Various vat schemes require different types of books and your vat agent could guide you about 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 UK then you will definitely have to maintain complete vat books for hassle free accounting and auditing.