After you have converted into a vat registered trader in the UK or perhaps any other country that follows vat then you 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 may be of great help if you are put through a vat audit.
In the United Kingdom 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 so before reaching that vat threshold limit. Once you have become a vat registered trader in the UK then you’ll need to obey all applicable vat rules framed by HM Revenue and Customs department or hmrc vat department. While there is no set way of maintaining books of accounts specifically for vat, you will 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 respective dealings with various parties even though these were conducted in other countries, etc.
These records should also 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 each product or service, and also the total vat amount collected against that sales invoice. All this data will also need to 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. When this happens, vat officers might call at 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 request 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 in order then that would 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 should go in for the services 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 discover more here. You need to maintain books of accounts related to vat for a duration of 6 years. Various vat schemes require different types 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 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’ll definitely have to maintain complete vat books for hassle free accounting and auditing.