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

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