Making Tax Digital ― overview

Produced by a Tolley Value Added Tax expert

Value Added Tax

Guidance

This guidance note provides an overview of Making Tax Digital (MTD) for VAT.

What is Making Tax Digital for VAT?

Broadly, MTD for VAT is a requirement on businesses to keep records in a digital format, file VAT returns using ‘functional compatible’ software and have a VAT return process that is ‘digitally linked’ and restricts the need for manual intervention in the preparation of VAT returns. The functional compatible software must be capable of receiving information from HMRC digitally via an ‘API’. All VAT-registered businesses must be compliant with the MTD requirements (albeit there are some very limited exceptions (see below). Businesses are automatically enrolled for MTD when submitting a new VAT registration.

Key considerations associated with MTD for VAT include the following:

Consideration	Further guidance notes
What are the digital record keeping and VAT filing requirements under MTD for VAT?	Making Tax Digital ― VAT ― returns and compliance

Making Tax Digital ― who do the rules apply to?

The MTD for VAT obligations apply to all VAT registered

Access this article and thousands of others like it
free for 7 days with a trial of Tolley+™ Guidance.

TAKE A FREE TRIAL

Popular Articles

Personal Tax

Payment of tax due under self assessment

Payment of tax due under self assessmentNormal due dateIndividuals are usually required to pay any outstanding income tax, Class 2 and Class 4 national insurance, and capital gains tax due for the tax year by 31 January following the end of the tax year (ie 31 January 2025 for the 2023/24 tax year).

14 Jul 2020 12:52 | Produced by Tolley Read more

Corporation Tax

Premiums on the grant or surrender of a lease

Premiums on the grant or surrender of a leasePremiums on the grant of a lease ― outlineWhen a property investor grants a lease, potentially this could be done on the basis that the tenant pays a premium for the initial grant of the lease, in addition to also paying rent over the term of the lease.

14 Jul 2020 12:58 | Produced by Tolley in association with Rob Durrant-Walker of Crane Dale Tax Read more

Value Added Tax

VAT registration ― change of VAT registration details

VAT registration ― change of VAT registration detailsVAT registered persons must keep their VAT registration details up to date and notify HMRC of any changes. Failure to notify HMRC by the relevant time could result in a penalty. For guidance regarding penalties for failure to notify please see the

14 Jul 2020 13:57 | Produced by Tolley Read more

��Ƶ