Making Tax Digital in the UK
Making Tax Digital is the UK's digital VAT reporting legislation effective as of April 1, 2019.
More VAT Reporting Projects:
Get Ready for e-Filing in the UK
As of April 1, 2019, businesses with over £85,000 in turnover subject to VAT must, on the one hand, file their VAT returns digitally, and on the other hand, submit them to HMRC electronically via API, with no manual intervention. Businesses with taxable turnover below the VAT threshold can also register for MTD on a voluntary basis.
The aim is to better control tax evasion and fraud and reduce errors made in manually processed documents. EDICOM's MTD solution has been approved by HMRC as a digital VAT registration and bridging software.
Which Companies are Affected by Making Tax Digital?
Companies with more than £85,000 in turnover subject to VAT must ...
Keep their VAT Records in Digital Archives
Submit their VAT Records to HMRC via API
What Information Does the MTD File Contain?
The file contains the nine fields that are currently reported to HMRC:
VAT for the period on sales and other products.
VAT payable for the period on purchases from other EU member states.
Total VAT due (sum of boxes 1 and 2).
VAT claimed for the period on purchases and other supplies (including purchased in the EU).
Net VAT payable to HRMC or VAT refund claimed (differences between boxes 3 and 4).
Total value of sales and all other products, excluding VAT.
Total value of purchases and other supplies, excluding VAT.
Total value of all goods supplied and related costs, excluding VAT, to other EU member states, excluding VAT.
Total value of goods acquired from other EU member states and associated costs, excluding VAT.
How to Communicate with HMRC
Users connect with HMRC through the Web Service protocol via API, preferably using JSON.
White Paper on VAT Compliance
This analysis of International Electronic Tax Compliance (available in English and Spanish) is a resource designed for companies that currently operate in several countries or have plans to do so.
Learn how indirect VAT works, how it is regulated and what its implications are for both businesses and tax authorities.
What Information Must Be Digitally Archived?
Mandatory Information (6 years)
Company name
Company address
VAT registration number
VAT accounting outlines
VAT calculations
Adjustments applied
For Product Sales and Purchases
Delivery date
Cash value
VAT
Adjustments or corrections made to VAT
Total VAT
Gross daily costs
Making Tax Digital Compliance
EDICOM - MTD (UK) Solution
We take care of the entire electronic process under strict security conditions.
Integration
Integrates with any accounting system or ERP.
Communications
Public Administrations HUB to connect with HMRC.
Invoice Control
Integrates information on the status of the invoices sent to your ERP.
Archiving
eIDAS certified electronic archiving.
Do you need to implement tax reporting projects in other countries?
EDICOM's platform simplifies communication processes with tax authorities in multinational contexts. It is a multistandard, multiprotocol solution that adapts to the market's main ERP systems.
Compliance Latest News
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