What is Making Tax Digital (MTD) for VAT? What are the rules and who do they apply to?

This is a freeview 'At a glance' guide. 

Subscribers see Making Tax Digital: VAT (subscriber guide)

Under Making Tax Digital (MTD) for VAT, known as 'Making VAT Digital' (MVD), VAT registered businesses are required to use 'functional compatible' software in order to report VAT.

This means that they must:

MVD applies to:

Start dates

Penalties

The existing VAT penalty rules apply until 1 January 2023 at which time a new Points based system for late filing and payment of VAT will be introduced.

For full details, see Making VAT Digital section.


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