It’s a HMRC requirement for VAT-registered businesses to:
- Keep records of sales and purchases
- Keep a separate summary of VAT called a VAT account
- Issue correct VAT invoices
To find out more, visit: https://www.gov.uk/vat-record-keeping
Update your VAT records using your Countingup app
Update your VAT status in the Countingup app using these guidelines. This will ensure your VAT records are automatically tracked in every transaction you make – from payments to sales invoices and bills.
How are my VAT records calculated?
A VAT record is a combination of VAT treatment, the VAT rate and the transaction amount.
What is ‘VAT treatment’?
The VAT treatment determines how a transaction affects your VAT return. It is depends on:
- The category of items you are trading: goods or services
- Whether you are buying or selling
- If you are buying, the location of your supplier (UK, EU or outside EU)
- If you are selling, the location of your customer.
If there is no VAT rate applicable for a certain transaction, select ‘Out of scope - not on VAT return’.
What is the ‘VAT rate’?
The VAT rate helps calculate the VAT amount associated with a transaction. It depends on a number of factors. You’ll find HMRC guidelines on VAT rates here.