Which records must businesses keep for VAT purposes?

For VAT purposes, businesses are required to maintain comprehensive records that provide a clear picture of their taxable activities. Keeping sales invoices, purchase invoices, VAT returns, and records of any adjustments is fundamental because these documents capture the essential transactional data required for accurate VAT reporting.

Sales invoices detail the output tax charged on taxable supplies, while purchase invoices provide information on the input tax businesses can reclaim. VAT returns summarize this information, reflecting the net VAT position for the reporting period. Records of any adjustments, such as corrections for errors or changes in tax rates, are also crucial for ensuring compliance with VAT regulations and preventing issues during audits.

While employee records, payroll data, stock levels, and inventory lists may be relevant for various business operations and may contribute to overall financial management, they do not specifically meet the VAT record-keeping requirements established by tax authorities. Thus, the focus must remain on the documents that directly relate to VAT assessments and submissions.