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Making Tax Digital Will Make Electronic VAT Essential In The United Kingdom

Written by Kevin Little

March 15, 2023

E-TAX Compliance

Making Tax Digital (MTD)

Businesses in the United Kingdom should prepare for Making Tax Digital (MTD). Following in the footsteps of other nations such as Spain, Hungary, and Lithuania, the United Kingdom is taking another step forward in its digital transformation of business and fiscal operations.

Businesses are required to maintain digital tax records and submit them to HMRC as part of the MTD initiative. Every quarter, this report must be sent to the HMRC. Businesses, on the other hand, can transmit their VAT reports more often as a means of improving their accounting management.

The HMRC has accepted SYMTRAX’s MTD solution as a bridge and digital VAT record keeping software.

Who Is Required To Follow As Of April 1, 2019?

HM Revenue and Customs (HMRC) is requiring VAT-registered firms with a taxable turnover greater than the VAT threshold of £85k to use the Making Tax Digital service to store records digitally and transmit them to HMRC through API automatically, without the need for any manual involvement.

Who Is Required To Comply With The Law Starting On October 1, 2019?

If you are a member of the deferral group, you must comply with the Making Tax Digital regulations beginning with your first VAT Return period beginning on or after 1 October 2019. If your firm is a trust, a not-for-profit organisation that is not organised as a corporation, files yearly reports, is a local authority, is a public corporation, makes payments on account, or makes use of the VAT GIANT service, you are considered to be in the deferral category.

What Do I Need To Do In Order To Link The MTD Model To My System?

  • VAT book creation in a structured style is automated. The file must contain the nine fields that are currently submitted to HMRC through other means.
  • HMRC’s message is as follows: API will be used to communicate with the British tax office, which will be connected using the WebServices protocol.
  • VAT book archiving in electronic form.

SYMTRAX provides a service that allows users to translate relevant data into the format required by HMRC, securely connect to it, automatically file a VAT return, and ultimately archive documents electronically with all of the information required. The HMRC notifications will be received and processed by the SYMTRAX system, and they will be archived with the reports.

What Kinds Of Information Must Be Preserved Digitally?

The following information, which must be electronically archived for six years, must be kept on file by businesses:

Name of the corporation Address of the corporation VAT registration number
Flowcharts for accounting for VAT
Calculations of the value added tax (VAT)
Adjustments were made.

The following information will be archived for product sales and purchases:
When will supplies be available?
VAT on a net basis adjustments or changes to the VAT system
Total Value Added Tax (VAT)
Daily gross receipts

Global Tax Compliance Is Becoming Digitised

SYMTRAX has created a complete solution that has been tailored specifically for international corporations. A B2B2G electronic communications platform with EDI, compliant e-Invoicing, and VAT compliance capabilities on a worldwide scale, it is a global EDI platform.

The greatest problem for multinational corporations is meeting local tax compliance requirements. When it becomes necessary to have numerous technological solutions, one for each country, efforts are multiplied, and activities become inefficient. This makes it difficult to realise the full potential of automation.

The SYMTRAX eVAT platform streamlines contact with tax authorities in international environments. It is the answer for businesses that operate on several markets with centralised management systems and must be able to process and submit tax papers in compliance with the regulations in effect in each nation.

In addition, SYMTRAX is a Trust Service Provider under the eIDAS Regulation, ensuring the security and dependability of signing services, as well as long-term electronic archiving capable of maintaining document integrity and providing documents with probative value. This is made possible by the preservation of qualified electronic seal certification.

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