With HMRC’s Making Tax Digital program coming into effect on 1st April 2019 there have been questions raised as customers begin preparing their VAT returns, specifically related to when customers must file VAT under the MTD rules.
When must my VAT submission be made via MTD?
The Making Tax Digital rules apply from your first full VAT period starting on or after 1st April 2019. A ‘VAT period’ is the inclusive dates covered by your VAT Return. This means that most customers filing their VAT return in April, will not have to do so under the new MTD rules and can continue using their existing VAT posting process.
Below are some questions and answers to help illustrate:
Q: My VAT Return is for the quarter ending 31st March, due for filing by the end of April. Will this Return be filed under the existing filing arrangement, even though it will be in April?
A: The MTD rules start for the first VAT period beginning on or after 1st April 2019. So, you can submit the return for the period ending 31st March 2019 via the existing portal.
Q: MTD for VAT is mandated from 1/4/19. Is this for whole quarters from 1/4/19? And not any with April period within the quarters? So, Feb-Apr & Mar-May can still be filed using old system
A: It is from the first full VAT period starting on or after 1st April 2019. The VAT returns for the examples you quote can be submitted via the existing portal.
Q: Can I just clarify dates…if my VAT return period is Feb to April, their first MTD return will be this one or May to July?
A: May to July would be the first one, in your example.
Q If we have several VAT registrations, and one is a group VAT registration, my understanding is that the group VAT registration is deferred, but the others are not. Would that be correct?
A: That is correct. Companies that are part of a VAT group should have received a letter from HMRC notifying them of the deferral to MTD compliance. Please contact HMRC if you are unsure.
Additional examples are available under section 2.1.2 on HMRC’s VAT notice.
Customers with an immediate MTD filing requirement who have registered for Avalara’s free MTD filer will be contacted directly by Avalara in the coming weeks with details on getting access to your dedicated version of the filer. If you require support to align your VAT return process to your chosen bridging software, please contact your Account Manager to schedule time with a finance consultant.
We are nearing completion on the development of the K3 solution called ‘K3 Digital VAT Live’ to comply with HMRC’s MTD 2020 requirement. This solution is being developed to work seamlessly with your SYSPRO ERP system. If you have not already done so, please complete our requirements questionnaire to allow K3 Syspro to understand a little more about your business, to ensure that we have captured your business requirement.
Please note: The questionnaire needs to be completed by someone familiar with the SYSPRO solution and who is responsible for ensuring your VAT return is submitted.
Please check back here for updates.