What do I need to know about digital records & digital submission? has been saved
What do I need to know about digital records & digital submission?
1. Digital Records
VAT-registered businesses with a taxable turnover above the VAT threshold are now required to keep records digitally and submit their VAT returns digitally. This means that:
- Businesses will need to store their AR and AP transactions listings digitally
- Businesses may not necessarily have to store each invoice/receipt digitally under current MTDfV requirements (the normal rules will continue to apply regarding the retention of business records and retention periods etc.)
The digital records should link to a digital VAT account from which the VAT return is prepared.
Most businesses should be able to meet digital records criteria readily if they are already using appropriate accounting software or systems to store their transactions.
2. Digital Submission
Traditionally, most business have submitted their VAT returns manually through HMRC’s online portal. This will no longer be permitted under the Making Tax Digital mandate, as VAT returns must now be filed digitally via HMRC’s MTDfV Application Programming Interface (API).
To help businesses remain compliant with MTDfV, Deloitte has developed its own API to assist with the challenges of digital submissions.
How can we help?
Deloitte’s VAT Return Filer is a straightforward online filing solution to help you submit your VAT returns without the need to install any software. It provides a simple and flexible approach to help manage VAT return compliance, rather than just a "bolt-on" to a spreadsheet. Watch the video demo to learn more about how it works: