VAT-registered businesses must:
keep records of sales and purchases
keep a separate summary of VAT called a VAT account
issue correct VAT invoices
Most VAT registered businesses who earn over £85,000 must follow the rules for ‘Making Tax Digital for VAT’.
How to Keep VAT Records
You must keep VAT records for at least six years (or ten years if you use the VAT MOSS service).
If you have 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 a penalty if your records are not in order.
You can hire a professional (such as an accountant) if you need help with your VAT.
See Also:
Further information on VAT Record Keeping can be found on GOV.UK's website.