Making Tax Digital for business in the UK

Making Tax Digital is the UK law on electronic VAT statements which will take effect from 1 April 2019.

Get ready for electronic VAT records in the UK

VAT-registered businesses with a taxable turnover above the VAT threshold of £85k are required to use the Making Tax Digital service to keep records digitally and send them to HM Revenue and Customs (HMRC) from 1 April 2019.

Businesses with a taxable turnover below the VAT threshold can also sign up for MTD for VAT voluntarily. The goal is to get a better grip on tax evasion and fraud and reduce the errors made on manually processed documents.

EDICOM’s MTD solution has been approved by the HMRC as bridging software y Digital VAT record keeping software.

Which businesses are affected?

VAT-registered businesses with a taxable turnover above the VAT threshold £85,000 will have to:

  1. Keep their records digitally for VAT purposes

  2. Provide their VAT return information to HMRC via MTD functional compatible software.

What information should an MTD file contain?

  • VAT due in the period on sales and other outputs

  • VAT due in the period on acquisitions from other EC Member States

  • Total VAT due (the sum of boxes 1 and 2)

  • VAT reclaimed in the period on purchases and other inputs (including acquisitions from the EC)

  • Net VAT to be paid to HRMC or reclaimed (difference between boxes 3 and 4)

  • Total value of sales and all other outputs excluding any VAT

  • Total value of purchases and all other inputs excluding any VAT

  • Total value of all supplies of goods and related costs, excluding any VAT, to other EC Member States

  • Total value of acquisitions of goods and related costs, excluding any VAT, from other EC Member States

How will communication with HMRC be implemented?

The connection with the UK tax authority will be through the web services protocol via API, preferably using JSON.

What information must be electronically archived?

Businesses must electronically archive the following information for six years:

  • Business name

  • Address of business

  • VAT number of business

  • Accounting schemes used

  • VAT calculations

  • Adjustments applied

For product purchase and sale, the information to file will be:

  • Date of supply

  • Net value

  • VAT amount

  • Adjustments or corrections made to VAT

  • Total VAT

  • Daily gross takings

Comply with the VAT declaration obligation today

We take care of the whole workflow under special security conditions.

Automatic integration

The solution is integrated with the company's ERP, implementing its mapping systems to automatically translate the information generated in the system to the electronic format required by each tax authority (XML, UBL, SAF-T, etc.).

Public Administration Hub

International communication platform to connect to HMRC or any other public body in Europe.

Invoice status control

The solution integrates status receipts directly in your ERP, affording real-time control on the status of invoices sent.

Electronic archiving

Electronic data archiving system applygin security mechanisms as Qualified Trust Service Provider (eIDAS certification). Invoices acquire probative value before third parties.

VAT Compliance White Paper

The Global VAT Compliance Expert Analysis (available in English and Spanish) is a resource designed for companies operating in several countries or planning to do so. Through it, you can find out how the indirect tax VAT works, how it is regulated and what its implications are both for companies and tax authorities.

Do you need to send VAT reports to different countries?

Hungary: Real Time Invoice Reporting since 1 July 2018

Spain: Immediate submission of VAT books since 1 July 2017

Poland: VAT returns using the JPK_VAT file

Portugal: e-Invoicing and e-Accounting