HMRC’s VAT Notice 700/21: keeping VAT records has recently been updated. The reason for any zero rate or exemption has been removed from the list of details you must include on a VAT invoice.

The notice provides VAT registered businesses with useful guidance on the records they must keep as well as providing advice on how best to keep these records.

The guidance is divided into the following main sections:

  • Record keeping rules common to all VAT-registered businesses
  • VAT invoices – the basics
  • VAT invoices – detailed rules
  • VAT account

Generally, you must keep VAT business records for at least 6 years. Records used for other tax purposes may need to be kept for longer periods. By special permission, HMRC may allow you to keep some records for a shorter period.

Most businesses are required to digitally keep an electronic account which includes all the information found in the VAT account.

Source: New feed