Keep digital records for Making Tax Digital for VAT

25-06-2019

How to keep digital records if you’ve signed up for Making Tax Digital for VAT.

Keep digital records for Making Tax Digital for VAT

How to keep digital records if you’ve signed up for Making Tax Digital for VAT.
You can use any digital product to keep your records, including:

  • the software you use to submit your return
  • spreadsheets
  • other software or digital products

You must have digital links between the products you use by 31 March 2020, unless HMRC sent you a letter to tell you that you’re in the deferral group. If you’re in the deferral group, you must have digital links between the products you use by 30 September 2020.

Business records
You must keep the following business records digitally:

  • your business name and address
  • your VAT registration number
  • a record of any VAT accounting schemes that you use
  • details of the supplies your business makes and receives
  • You’ll also need to keep a digital record of the total amount of tax your business:
  • owes on sales
  • is entitled to claim on business purchases
  • owes and is entitled to claim on acquisitions from other EU countries
  • needs to pay on behalf of suppliers who use a reverse charge procedure
  • owes or can reclaim following a correction or error adjustment
  • owes or can reclaim as part of any other adjustment

Your digital records are used to make up the VAT return you submit using compatible software.
Using more than one product to keep records
If you use more than one product to keep your digital records, you’ll need to digitally link them together.
A digital link is a transfer or exchange of data between the products you use to keep your records. You can create digital links by doing things like:

  • linking cells in spreadsheets
  • emailing records to your agent
  • putting records on a portable device to give to your agent
  • importing and exporting XML and CSV files
  • downloading and uploading files

If you’re on a VAT scheme, there are some differences to the records you keep digitally.

  • Retail Scheme
  • Flat Rate Scheme
  • Gold Special Accounting Scheme
  • Margin schemes

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