HMRC has published a new VAT Notice (700/22), ‘Making Tax Digital for VAT’.
The new notice provides information on the new rules with which VAT-registered entities will have to comply.
For VAT return periods commencing after 31 March 2019, VAT-registered entities with annual VAT-able turnover above £85,000 will legally be required to keep digital records for VAT purpose, using MTD compatible software and providing the data of the VAT return to HMRC through an API application programming interface.
This will take effect from 1 April 2019, for taxpayers who have a ‘prescribed accounting period’ which begins on that date, or from the first day of a taxpayer’s prescribed accounting period beginning after 1 April 2019.