This is a freeview 'At a glance' guide to Making Tax Digial for VAT. 

Under Making Tax Digital (MTD) for VAT, known as 'Making VAT Digital' (MVD), most VAT businesses are required to use 'functional compatible' software in order to report Value Added Tax (VAT).

This means that:

  • Keep records digitally for VAT purposes.
  • Use functional compatible software.
  • Submit VAT return information to HMRC directly through their software.

MVD applies to:

  • VAT registered business with a turnover above the VAT threshold (currently £85,000) at 31 March 2019, and to newly VAT registered business.
  • All VAT registered businesses from the first return due on or after 1 April 2022, unless exempt.

Start dates

  • MVD commenced for the first VAT accounting periods commencing on or after 1 April 2019.
  • Certain businesses are deemed as complex for VAT, their MVD start date was deferred and commenced on the first VAT accounting periods on or after 1 October 2019.
  • Businesses who use the GIANT (Government Information and NHS Trust) service, are not mandated to join until April 2022.
  • For businesses who have joined MTD for VAT, digital links must be in place by April 2021. This is delayed from April 2020/October 2020 due to COVID-19.

Full details: see Making VAT Digital section.


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