VAT Record Keeping
It is essential for a VAT registered company to maintain precise records on all input and output VAT. The records and invoices you retain for VAT purposes must sufficiently back any figures submitted on your VAT return. Any records retain for VAT must also be backed up and kept safe at all times.
Record Keeping for Sales
VAT Registered companies issue VAT invoices to clients. The VAT invoices are used as the basis for calculating your VAT liability. All VAT invoices should state your business details, VAT number, VAT rates and net amounts of VAT. VAT invoices issued in a foreign currency must show the exchange rate and any VAT amounts in GBP Sterling.
Record Keeping for Purchases
If you intend to reclaim VAT on your purchases you must retain a copy of the VAT receipt you were issued from your supplier. The VAT receipts should be used to back any input VAT reclaimed on your VAT return.
VAT Accounting Software
VAT accounting is simplified when using a dedicated software application that allows you to produce VAT invoices, record purchases and calculate VAT liabilities. There are many desktop and cloud based accounting application that you can use to manage your VAT record keeping. One application we recommend is QuickFile due to it's simple, intuitive interface and low costs. --Latest--