MTDfV


Proprietary format/Content	Reference
Making Tax Digital for VAT (MTDfV) Submit VAT Return View VAT Return View VAT Liabilities View VAT Payments View VAT Obligations	1.0

In the United Kingdom, Making Tax Digital for VAT (MTDfV) requires that digital records are kept and sent to the MTDfV web service electronically.

The quarterly, monthly, and annual VAT returns have been submitted online to Her Majesty’s Revenue and Customs (HMRC) website since 2010. The MTDfV builds on that initiative by integrating digital record-keeping of VAT returns to provide a single, seamless process with quarterly updates that are generated and sent directly from the software the businesses use to keep their records.

The compatible software must include these functions:

Keeping records in a digital form as required by the regulations
Preserving digital records in a digital form as required by the regulations
Creating a VAT return from the digital records held in functional compatible software and providing HMRC with this information digitally
Providing HMRC with VAT data on a voluntary basis
Receiving information from HMRC in relation to a relevant entity’s compliance with obligations under the regulations

This diagram shows the main components of the MTDfV solution:

VAT return data is sent from the ERP or uploaded independently through ION into the LSP database. The grouping functionality is used to consolidate multiple VAT declarations from different sources into a single submission. Each submission is reviewed before it is submitted to HMRC. In addition, information on returns, historical liabilities, and payments are retrieved from HMRC and reviewed.

LSP functionalities

This table shows the MTDfV functions that are supported in LSP:


Functionality	Description
Submit VAT Return	Submits a VAT return data directly to HMRC Prior to submission, the details of the VAT return (9 boxes amount) can be viewed for review and verification. The taxpayer must confirm a declaration before sending the return directly to HMRC. Frequency of submission could be monthly, quarterly, or annually.
View VAT Return	Shows the submitted amounts and generates submitted VAT return data from HMRC for validation The In Balance status verifies if the submitted information for the selected tax period is equal to the generated data from HMRC.
View VAT Liabilities	Generates the liabilities and charges information whose To date falls in the requested date range The report generated includes this information: Charge type of the liability Original amount Outstanding amount (if applicable) Due date for payment
View VAT Payments	Generates information on payments that have been used to offset liabilities whose To date falls in the requested date range. The report generated includes this information: Amount allocated to a liability Date when payment was received (if available)
View VAT Obligations	Generates information on obligations from HMRC, including due dates and the periods they cover. The report generated includes these information: Start and end date range of the obligation Due date Date received, if applicable Status of the obligation as either Open or Fulfilled

Connectivity is provided through the Web Services Gateway or ION API.