what is vat account?
<answer> Your VAT account needs to record all items or services that you buy or sell, their price and the VAT charged on them. <context> The VAT account. 1  Your VAT account needs to record all items or services that you buy or sell, their price and the VAT charged on them. 2  Unless you're very comfortable adding up pages and pages of a book, it's best to keep these figures in a spreadsheet. 3  Show things you've bought in three columns: net price, VAT charged and total for each item.