You must keep VAT records for at least six years. You can keep them on paper or electronically. Records must be accurate, complete and easy to access.
You must keep a separate record of the VAT you charge and the VAT you pay on your purchases. This record is called a ‘VAT account’.
There aren’t any rules on what a VAT account should look like, but it must show:
- Your total VAT sales
- Your total VAT purchases
- The VAT you owe HMRC
- The VAT you can reclaim from HMRC
- If your business uses the VAT Flat Rate Scheme: the flat rate percentage and turnover it applies to
- The VAT on any EU acquisitions (purchases) or dispatches (sales)
- The VAT you owe or are entitled to following a correction or error adjustment
VAT Invoices
The following elements must be included on an invoice for it to comply with VAT regulations:
- Unique invoice number that follows on from the last invoice
- Your business name and address
- Your VAT number
- Date
- The tax point (or ‘time of supply’) if this is different from the invoice date
- Customer’s name or trading name, and address
- Description of the goods or services
- Total amount excluding VAT
- Total amount of VAT
- Price per item, excluding VAT
- Quantity of each type of item
- Rate of any discount per item
- Rate of VAT charged per item - if an item is exempt or zero-rated make clear no VAT on these items.Show the total of these values separately
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