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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 United Kingdom or even in any other country that follows vat then you should maintain complete vat books for hassle free accounting. These books of accounts need to record and display each vat transaction in greater detail, and may be of great help if you’re subjected to a vat audit.

In the UK you will have to go for vat registration upon completing 70,000 sterling pounds of taxable sales in the last one year of your business, even though you can still do this before reaching that vat threshold limit. After you have become 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. While there is no set means of maintaining books of accounts especially for vat, you will still www.vatverification.com need to ensure 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 they 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 have to display your vat number, vat rate for each service or product, and 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. 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 may want to look at all your books of accounts to confirm 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 your books of accounts pertaining 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 business plus your reputation.

If you have any problems in understanding what is vat then you definitely should go looking for the services of a capable vat agent that can assist you to create and maintain all books of accounts associated with vat in a clear and methodical manner. You will 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 would be able to assist you about the right format for your business based 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. In case you too now utilize vat in the United Kingdom then you will definitely have to maintain complete vat books for hassle free accounting and auditing.