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Notice

VAT Notice 700/22: Making Tax Digital for VAT

This notice explains the rules for Making Tax Digital for VAT and about the digital information you must keep if they apply to you.

Updates to this page

From:
HM Revenue & Customs
Published:
13 July 2018
Last updated:
1 April 2022
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  1. Information has been updated to reflect the fact that VAT registered businesses with taxable turnover below the registration threshold will also need to follow the Making Tax Digital rules from 1 April 2022.

  2. Section 8 has been updated with new examples of when digital links are required. Section 4 has been updated to reflect the end of the soft landing period for digital links, and the closure of the digital links extension application process.

  3. This page has been updated because the Brexit transition period has ended.

  4. The Notice has been updated with information to extend the soft landing period on digital links - this period will now end for VAT return periods starting on or after 1 April 2021.

  5. Paragraph 4.2.1.3 explains how businesses that need to update exceptionally complex or legacy IT systems may qualify for a time-limited extension to their 2020 deadline for having full digital links in place.

  6. Guidance on the turnover test, following the rules when you're exempt, digital links, supplies made by third party agents and supplies received has been updated. Guidance on use of supplier statements, petty cash transactions and charity fundraising events has been added.

  7. This notice has been updated with guidance on who is exempt from following the rules for Making Tax Digital for VAT.

  8. The notice has been updated to clarify the Making Tax Digital rules at section 2.1, and at section 3.2.1.1 to reflect that for a small number of businesses the Making Tax Digital rules will not apply until their first VAT Return period starting on or after 1 October 2019 and that the digital links ‘soft landing period’ for those deferred businesses will be 12 months from their start date.

  9. First published.

Documents

VAT Notice 700/22: Making Tax Digital for VAT

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Details

Rules introduced under the Making Tax Digital initiative mean that all VAT registered businesses need to keep digital records and submit VAT Returns to HMRC using compatible software.

This notice:

  • explains the digital records businesses must keep, and ways to record transactions digitally in certain special circumstances
  • explains what counts as compatible software, and when software programs do and do not need to be digitally linked where a combination of programs is used
  • gives examples of when digital links are required

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