VAT-registered businesses must:
- keep records of sales and purchases
- keep a separate summary of VAT called a VAT account
- issue correct VAT invoices
How to keep VAT records
You must keep VAT records for at least 6 years (or 10 years if you use the VAT MOSS service.
You can keep VAT records on paper, electronically or as part of a software program (eg book-keeping software). Records must be accurate, complete and readable.
If you’ve lost a VAT invoice or it is damaged and no longer readable, ask the supplier for a duplicate (marked ‘duplicate’).
HMRC can visit your business to inspect your record keeping and charge you a penalty if your records aren’t in order.
You can hire a professional (eg an accountant) if you need help with your VAT.