The United Kingdom has developed its own electronic VAT model known as Making Tax Digital (MTD). Following the path of other countries such as Spain, Hungary and Lithuania, the country takes a further step toward digital business and tax transformation.
This model came into effect on April 1, 2019, for businesses with a taxable turnover above the VAT registration threshold of £85,000. Now, HMRC is extending the requirement to businesses with a turnover below the £85,000 VAT threshold for their first VAT return period from April 1, 2022. These businesses should be able to file their VAT records in digital format and send VAT returns to HMRC via API electronically without manual intervention. This report must be reported to HMRC on a quarterly or monthly basis.
Source Edicom
