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
December 12, 2018
On 12 December, the European Commission published details of a new rule which would make large online marketplaces responsible for calculating, collecting and remitting VAT on certain B2C cross-border transactions below €150. Where goods are imported by an EU or non-EU merchant, and then sold via a marketplace in another EU country..
December 10, 2018
The UK’s HMRC has written to all VAT-registered businesses that trade with the EU to recommend immediate actions in the case of a no-deal Brexit on 29 March 2019. This is over 140,000 businesses.
November 26, 2018
The EU27 governments have now agreed the Brexit Withdrawal Agreement (WA) which sets out the terms of the UK’s exit from the EU on 29 March 2019....
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- UK Making Tax Digital
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