Making Tax Digital - digital record-keeping

UK VAT registered businesses under the new Making Tax Digital (MTD) rules must keep and maintain relevant VAT records digitally within ‘functional compatible software’. This includes sales and purchase invoices with VAT. Accounting records not specific to VAT return requirements are not included in this.

The following date must be stored digitally:

  • Designatory data: business trading name; address; VAT registration number; any accounting schemes used
  • Supplies made: tax point / time of supply; value of supply excluding VAT; rate of VAT charged
  • Supplies by third parties: where an agent makes a supply for another business
  • Supplies received: time of supply / tax point; value of the supply; amount of input VAT being recovered
  • Reverse charge transactions
  • Summary VAT return data:
    • Total output (sales) VAT owed
    • Total VAT owed on acquisitions from other EU member states
    • Total VAT to pay for reverse charge supplier transactions
    • Total input (purchase) VAT due
    • Total VAT allowable on acquisitions from other EU member states
    • VAT due or to be refunded due to corrections and errors
    • Any other adjustments

Adjustments may be recorded at the summary total level digitally. Individual adjustments need not be stored digitally.


Latest British news

UK HMRC wins catering VAT case

February 4, 2019

HMRC has won a tax tribunal ruling which held that the sandwich shop chain, EAT Limited, had to charge 20% VAT on its bacon breakfast muffins and grilled ciabatta bread products. EAT is now obliged to settle a £632,620 VAT bill for failing to levy VAT on these products.

EU VAT and tax veto review

January 25, 2019

The European Commission (EC) has proposed switching from unanimous to majority voting on EU VAT and other tax policies.  The aim is to progress fiscal reforms which face immovable opposition from just a limited number of member states. 

UK MTD pilot open to VAT groups

January 24, 2019

HMRC has extended the Making Tax Digital for VAT pilot to members of VAT Groups. MTD will require over 1 million businesses above the £85,000 VAT registration threshold to record