From April 2021, UK VAT taxpayers covered by MTD requirements will have to adapt their systems to the digital links requirement.
The so-called “soft landing period” will remain until 31 March 2021. During that period VAT taxpayers do not need digital links in place when transferring VAT data between different systems or applications. Therefore, for about three more months it is permitted to use manual intervention in the VAT reporting process. In particular, the “cut-and-paste” method is recognized as acceptable by HMRC.
However, as mentioned, for the reporting periods starting on 1 April 2021, UK businesses will have to use digital links to transfer relevant VAT data.
Source Ridvan Yigit
