A business registered for value added tax must issue tax invoices for taxable supplies and keep records that support each monthly return.
Core records
- Tax invoices issued, in sequence
- Purchase invoices supporting input tax claims
- Purchase and sales books in the prescribed form
- Records of imports and exports
- Credit and debit notes
Monthly reconciliation
Reconciling the purchase and sales books with the accounts each month, before the return is prepared, helps identify missing invoices and timing differences early.
This is a general outline. The prescribed forms and retention periods are set out in the VAT Act, the VAT Rules and IRD directives.
References
- VAT
- Record keeping