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Making Tax Digital for VAT

Making Tax Digital for VAT

Getting ready for digital VAT reporting

Chris Downing

Partner, Tax

KPMG in the UK


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tax, vat, digital

The future of tax is digital – and the requirement to report VAT in the UK digitally is fast approaching. Is your business prepared?

Making Tax Digital (MTD) is one of HMRC’s key strategic priorities, with the aim of transforming and modernising how tax is reported and managed. The first stage of MTD is to bring VAT into the digital domain.

From April 2019, all businesses with a turnover above the VAT threshold will be required to file their returns digitally. Although 98% of VAT registered businesses already file VAT returns electronically, MTD will involve significant changes to the existing process.

KPMG can help…

We can help your business assess its position and get ready for the VAT change in three stages:

Diagnostic Assessment: carrying out a diagnosis of your current VAT returns process to establish what the organisation will need to do to become compliant from April 2019.

Systems Readiness: we can advise on the most appropriate system changes and assist with implementation, ensuring compliance.

Future Proof Tax Reporting: we can help your business future proof systems in readiness for a potential increase in requirements under MTD for digital and automated tax return processes.

…whatever type of business you are

MTD requires an upgrade in technical systems such that tax information is transmitted digitally. Manual transposition of data (copy/pasting or re-keying etc.) willno longer be compliant.

We can help your business prepare for these changes by supporting your analysis of current systems and processes to identify what changes need to be made to be compliant.

We have a number of scalable technology tools including KPMG Tax Bridge to help you meet this reporting requirement.

Download our guide 'Are you ready for digital VAT reporting?' for more information on how you can prepare for the digitisation of VAT reporting.

KPMG Tax Bridge

KPMG Tax Bridge can integrate with any Excel spreadsheet using specified input cells that allow the application to import the values associated with each box on the return.

The tool interacts via HMRC’s API to allow users to submit their VAT returns in a digital, MTD-compliant way. The solution is also scalable allowing for the process to adapt as HMRC requirements evolve.

The application will allow users to retrieve filed returns, view VAT liability, and payment information. Other features will include notifications for upcoming filings and storage of previous submissions.

As it is a cloud based solution, the application requires minimal implementation time and IT overhead. This also allows for increased flexibility and seamless updates as requirements change. 

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