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Making Tax Digital for VAT rules

Under the rules, businesses and organisations need to keep certain records digitally and submit their VAT Return information using MTD-compatible software. You can find the rules in sections 60 to 62 of the Finance (No.2) Act 2017 and in amendments to the VAT Regulations 1995.

Which records must be kept digitally?

The records that must be kept digitally are described in paragraph 4.3 of VAT Notice 700/22: Making Tax Digital.

How do I know if software is MTD compatible?

Onvio is compatible with MTD for VAT. You can visit the GOV.UK website to check which software is compatible with Making Tax Digital for VAT. 

When does MTD for VAT become mandatory?

VAT-registered businesses and organisations with a taxable turnover above the VAT threshold have needed to comply since their first VAT period on or after 1 April 2019, or 1 October 2019 if directed by HMRC.

Businesses and organisations that are VAT-registered and have a taxable turnover below the VAT threshold will need to comply from their first VAT period on or after 1 April 2022.

Further reading

Making Tax Digital for VAT resources.