Once 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 trouble free accounting www.vatverification.com. These books of accounts have 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 will have to opt for vat registration upon completing 70,000 sterling pounds of taxable sales in the last one year of your business, even though you could 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. Although there is no set means of maintaining books of accounts especially for vat, you still have to be sure that you store all specifics 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 details will also need to be summarized whenever 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 also the total vat amount collected against that sales invoice. All this data should also be mentioned in the sales books even as all purchase invoices will need to be summarized in the purchase books. In addition, maintaining bank and cash books is mandatory 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 or even your vat refunds and might decide to conduct a vat audit of your business. In such a case, vat officers might visit your business premises and would want to go over all of your books of accounts to verify certain doubts lingering in their minds. They may 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.
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 keep all books of accounts related to vat in a clear and methodical manner site here. You will need to keep your books of accounts connected with 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 about the right format for your business depending on your scheme and vat classifications of your goods and services.
Maintaining proper books of accounts can help you to conduct your business in a clear and seamless manner. If you too now utilize vat in the United Kingdom then you will definitely need to maintain complete vat books for trouble free accounting and auditing.