Books and Records You Need to Keep for VAT Returns
When it comes to Value-Added Tax (VAT), keeping accurate and detailed records is not just a good business practice—it’s a legal requirement. Whether you’re a small business or a large enterprise, maintaining proper books and records is essential for preparing your VAT return and staying compliant with Revenue regulations.
In this blog, we’ll guide you through the key records you need to keep and why they’re important for your VAT obligations.
Why Keeping Proper Records Matters
Accurate records are the foundation of your VAT return. They allow you to:
- Calculate your VAT liability or repayment correctly.
- Provide evidence to Revenue in case of an inspection.
- Avoid penalties for non-compliance.
Under Irish VAT law, businesses are required to keep full and true records of all transactions that affect their VAT liability. These records must be retained for six years, unless Revenue authorizes otherwise. For certain schemes, such as the Union or Import Schemes, records must be kept for 10 years.
What Records Do You Need to Keep?
To prepare your VAT return, you’ll need to maintain the following books and records:
1. Business Books and Records
- Sales Day Book: A record of all sales transactions, including VAT charged.
- Purchases Day Book: A record of all purchases, including VAT paid.
- Cash Receipts Book: Details of all cash received.
- Cheque Payments Book: Details of all cheque payments made.
- Register of Assets and Liabilities: A record of your business’s assets and liabilities.
- Record of Asset Acquisitions and Disposals: Details of any assets bought or sold.
2. Invoices and Credit Notes
- Sales Invoices: These must include details such as the VAT rate, VAT amount, and total amount charged.
- Purchase Invoices: These are essential for reclaiming VAT on business expenses.
- Credit Notes and Debit Notes: Records of adjustments to invoices.
3. Receipts and Vouchers
- Receipts for cash sales and purchases.
- Vouchers issued or redeemed by your business.
4. Bank Statements
- Bank statements must be analyzed and reconciled with your cash receipts and payments books.
5. VAT-Specific Records
- VAT Information Exchange System (VIES) Records: For intra-Community supplies of goods or services.
- Intrastat Returns: For businesses involved in the movement of goods within the EU.
- Stamped Copies of Single Administrative Documents (SADs): For imports and exports.
Electronic Record-Keeping
Records can be stored electronically, but they must be:
- Accurate and Up-to-Date: Ensure all transactions are recorded promptly.
- Accessible: Revenue must be able to inspect your records and verify the accuracy of each transaction.
Common Mistakes to Avoid
- Failing to Keep Detailed Records: Incomplete records can lead to errors in your VAT return and potential penalties.
- Not Reconciling Bank Statements: Always ensure your bank statements match your cash receipts and payments.
- Ignoring Retention Periods: Remember, records must be kept for at least six years (or 10 years for certain schemes).
How We Can Help
At Keogh Accountancy Group, we understand that managing VAT records can be time-consuming and complex. That’s why we offer comprehensive bookkeeping and VAT services to ensure your records are accurate, up-to-date, and compliant with Revenue requirements.
Our services include:
- Setting up and maintaining your books and records.
- Preparing and filing VAT returns.
- Providing advice on VAT compliance and record-keeping.
Get in Touch Today
Don’t let VAT compliance stress you out. Let us handle your books and records so you can focus on growing your business. Contact us today to learn more about our VAT services and how we can help you stay on top of your obligations.
📞 Call us at 091 778690
📧 Email us at [email protected]
🌐 Visit our website at https://accountancygalway.com/
By keeping the right records and working with a trusted accountancy partner, you can simplify your VAT return process and avoid unnecessary headaches. Let us help you get it right the first time!