What kinds of books of accounts are required to be maintained under VAT?
A. The VAT book-keeping is very simple and can be kept even by enterprises that do not maintain full books of accounts or do not use double entry accounting. Taxpayers are essentially required to keep two books: Purchases Book ; and Sales Book. These books are a record purchases and sales respectively and are specifically designed for easy calculation of VAT. Simplicity of record keeping is the major objective in designing of these books. 66. Describe the format of the Purchase Book. A. The Purchase Book is a record required to be maintained buy all registered dealers. If should be used to log those purchases against which credit is allowed and those against which credit is not allowed, separately.
