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Maintain complete vat books for trouble free accounting


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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. These books of accounts have to record and display each vat transaction in detail, and can be of great help if you are 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 twelve months of your business, although you could do this before reaching that vat threshold limit. After you have become a vat registered trader in the UK then you’ll have 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 assorted parties even if they were conducted abroad, etc.

These details 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 every product or service, and also the total vat amount collected against that sales invoice vatnumbers.com. All of this data will also need to be mentioned in your sales books even as all purchase invoices will have to be summarized in your purchase books. Moreover, maintaining bank and cash books is mandatory 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 and 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 would want to look at all your books of accounts to confirm certain doubts lingering in their minds. They might cross check vat invoices with all 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 pertaining to vat are in order then that would make 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 in understanding what is vat then you definitely go in for the services of a capable vat agent that can assist you to create and keep all books of accounts associated with vat in a clear and methodical manner website. 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 would be able to guide you on the right format for your business depending on your scheme and vat classifications of the services and goods.

Maintaining proper books of accounts will help you to conduct your small business in a clear and seamless manner. If you too now utilize vat in the United Kingdom then you’ll definitely have to maintain complete vat books for hassle free accounting and auditing.