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 Making Tax Digital e-Reporting in the UK
Making Tax Digital (MTD) will be extended to the VAT-registered population, those with turnover below the £85,000 VAT threshold, for their first VAT return period starting on or after 1 April 2022.
As of April 1, 2022, businesses below £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.
The aim is to better control tax evasion and fraud and reduce errors made in manually processed documents. EDICOM's MTD solution for VAT submission has been approved by HMRC as a digital VAT registration and bridging software.
What must companies do?
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 due on sales and other outputs (not include exports as these are 0 rated)
VAT due on acquisitions made in Northern Ireland from EU Member States
Total VAT due (the sum of boxes 1 and 2)
Total amount of deductible VAT charged on your business purchases (input VAT)
Net VAT to be paid to HMRC or reclaimed by you (Difference between boxes 3 & 4)
Total of your total outputs (supplies), excluding VAT
Total value of your inputs (purchases) excluding VAT
Total value of supplies, excluding any VAT, from Northern Ireland to EU Member States
Total value of all acquisitions, excluding any VAT, made in Northern Ireland from EU Member States
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
Denmark Modernizes Its Bookkeeping Act to Promote the Digitalization of Accounting
e-Invoicing and e-Tax Compliance in Africa
VAT in the Digital Age – conclusions of the European Commission's DDR study
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