VATSM7420 - Record keeping, reporting and accounting: business records: the VAT account

VAT registered businesses are required to keep a VAT account under regulation 32 of the VAT Regulations 1995. VAT relating to acquisitions must be separately itemised in the VAT account to allow the details to be transferred easily across to the VAT return. The total VAT to be accounted for on the acquisition of goods from other Member States should be entered in the VAT payable column of the account. Acquisition VAT that is deductible as input tax (subject to the normal rules of entitlement ) should be entered in the VAT deductible column of the account.