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.
You can keep them 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 you can’t rely on a photocopy. 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.