Timetable for Making Tax Digital for VAT: Making VAT Digital 'MVD'.

This is a freeview 'At a glance' guide.

Subscribers see our MVD subscriber guide.

• VAT registered businesses, who are trading above the £85,000 VAT registration threshold must, for VAT returns periods commencing on or after 1 April 2019, have started using MVD 'functional compatible software' which is capable of directly filing the nine box VAT return with HMRC.
• In the initial stages of MVD HMRC simply wanted you to submit the nine boxes on your VAT return via your software and not by using HMRC's VAT portal.
• From 1 April 2021, your software has to 'talk' to HMRC and it will be used to submit transactional data. There must be a digital link from the VAT return box back to your software. Copy and paste will no longer be accepted.
• For details of penalties see Penalties (VAT)

Some business taxpayers were allowed to defer entry into MVD until 1 October 2019. These were more complicated business models.

• Trusts
• 'Not for profit’ organisations that are not set up as a company
• VAT divisions and VAT groups
• Those public sector entities required to provide additional information on their VAT return (Government departments, NHS Trusts), local authorities
• Public Listed companies (PLCs)
• Traders based overseas
• Those required to make payments on account
• Annual accounting scheme users

VAT-registered businesses that are trading below the VAT threshold may join on a voluntary basis.

Who needs to join MVD and when?

All VAT-registered businesses who operate above the VAT threshold of £85,000 must now use MVD, unless an exemption applies. From 1 April 2022, all remaining VAT-registered businesses must join, again, unless an exemption applies.

Filing exemptions and exclusions

• Those who are digitally excluded by reason of age, disability, location, etc.
• Individuals or businesses subject to insolvency procedures.
• Businesses run entirely by members of a religious society or order for whom electronic communication is incompatible.
• See Making Tax Digital for VAT: who is digitally excluded?