MTD: What records must be kept digitally?

Designatory data

• your business name
• the address of your principal place of business
• your VAT registration number
• any VAT accounting schemes that you use

Supplies made, for each supply

• time of supply (tax point)
• value of the supply (net value excluding VAT)
• rate of VAT charged

This only includes supplies recorded as part of your VAT Return. Supplies that do not go on the VAT Return do not need to be recorded in functional compatible software. For example intra-group supplies for a VAT group are not covered by these rules

Supplies received, for each supply

• time of supply (tax point)
• value of the supply
• amount of input tax that you will claim

This only includes supplies recorded as part of your VAT Return. Supplies that do not go on the VAT Return do not need to be recorded in functional compatible software. For example, wages paid to an employee would not be covered by these rules.

There is no requirement under the regulations to record inputs for the period split by VAT rate.

Summary data

• To support each VAT Return you make, your functional compatible software must contain:
• the total output tax you owe on sales
• the total tax you owe on acquisitions from other EU member states
• the total tax you are required to pay on behalf of your supplier under a reverse charge procedure
• the total input tax you are entitled to claim on business purchases
• the total input tax allowable on acquisitions from other EU member states
• the total tax that needs to be paid or you are entitled to reclaim following a correction or error adjustment, and
• any other adjustment allowed or required by VAT rules. A total of each type of adjustment must be recorded as a separate line.

For more information on making tax digital please contact Emma Hardwick from our Plus Advisory team.