July deadline for first MTD for VAT filing for complete quarter

Companies will not have to file their first digital VAT return under Making Tax Digital for VAT until 1 July at the earliest, although the digital reporting requirement becomes mandatory in April

The VAT digital reporting only applies to complete quarters post-1 April 2019.

Although MTD goes live in April, the first quarterly MTD for VAT filings are due from 1 July 2019.

In the first year of mandatory reporting, HMRC has confirmed that it will take a soft penalty approach and importantly companies will be able use a 'cut and paste' approach during the one-year soft landing before companies need to use digital links.

This means that for the first year of mandation businesses will not be required to have digital links between software programs when VAT reporting between subsidiaries and head office.

The one-year soft landing period will be in place until at least April 2020, depending on the classification of the business, giving organisations time to implement a system of digital links between all parts of their functional compatible software, for example where a company has a number of subsidiary companies with separate finance functions and departments.

Report by Sara White

Essential reading

Soft landing for Making Tax Digital for VAT will allow 'cut and paste'

4
Average: 4 (1 vote)
Subscribe