After you have turned into a vat registered trader in the UK or perhaps some other country that follows vat you then should maintain complete vat books for hassle free accounting Vatverification.com. These books of accounts need to record and display each vat transaction in detail, and can be of great help if you’re subjected to a vat audit.
In the United Kingdom you will have to opt for vat registration upon completing 70,000 sterling pounds of taxable sales in the previous one year of your business, even though you can still do this before reaching that vat threshold limit. Once you have become 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. Although there is no set means of maintaining books of accounts specifically for vat, you 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 if they were conducted abroad, etc.
These details 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 the total vat amount collected against that sales invoice. All this data will also need to be mentioned in your sales books whilst all purchase invoices will have 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 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 your sales books or ask for 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 would make a favourable impression with those vat officers as well as prevent any penalties from striking down your organization as well as your reputation.
If you have any problems in understanding what is vat then you definitely go looking for the expertise of a good vat agent that can assist you to create and keep all books of accounts associated with vat in a clear and methodical manner reference. You need to keep your books of accounts related to vat for a period of 6 years. Various vat schemes require different types of books and your vat agent would be able to guide you on the right format for your business based on your scheme and vat classifications of the goods and services.
Maintaining proper books of accounts can help you to conduct your small business in a clear and seamless manner. If you too have adopted vat in the UK then you will definitely have to maintain complete vat books for trouble free accounting and auditing.