On 13 September 2017, HMRC published draft legislation for the Making Tax Digital (MTD) project. Together with the draft regulations requiring businesses to provide updates in digital format, and allowing HMRC to communicate digitally with taxpayers, the published package included an “overview” of the MTD legislation for VAT.
The VAT overview confirms that, from April 2019, businesses with a turnover above the VAT threshold8 will need to:
• keep their VAT records digitally
• provide their VAT returns to HMRC through software that is compatible with MTD
This followed the publication of the Finance (No.2) Bill 2017 on 8 September 2017, which included the MTD provisions originally planned for the Finance Bill 2017 which received Royal Assent before this year’s general election. These draft MTD provisions reflect the generally relaxed MTD timetable, although MTD for VAT is largely proceeding as planned, at least in terms of timing.
The VAT overview confirms that businesses will not, as a result of MTD, be required to submit information more frequently than they do currently. The overview also confirms that VAT submission and payment dates will be unaltered by MTD.
The MTD VAT regulations will be published in draft for consultation by April 2018.
The VAT overview can be viewed here.