Initially the UK Government’s Making Tax Digital (MTD) mandate - requiring companies to keep digital VAT records and submit returns digitally - created worries, scepticism and concerns of extra burden, complexity, and cost. Just over a year on and we’ve found that, for many of our customers, MTD for VAT has brought about positive change. It’s made life easier. It’s been a catalyst to trigger broader digital tax transformation and new consideration of what benefits tax technology and working in the cloud can bring.
Our customers report that the automation and digitisation due to the MTD mandate has meant they spend less time on their UK VAT returns and has helped them get the numbers right the first time. VAT calculation and VAT compliance processes are more accurate and less onerous, freeing-up time to focus on higher value tasks.
MTD for VAT has provided the opportunity to streamline related working practices and improve business efficiency - baking in good record keeping across transactions and enabling access to accurate data across other financial information. Many businesses have a huge number of inputs and outputs to keep track of on a monthly basis. Thishas been made easier and faster via automation and through tax digitalisation.
Companies have more accurate accounting and benefit from improved tax information and real-time reporting. They can know make better informed decisions. Tax technology and digital migration brings business agility in our unpredictable world where now, more than ever, you need to be ready for when change happens.
Vertex VAT Compliance supports UK MTD and other digital reporting requirements, for example SII in Spain and RTR in Hungary, with integrated automated reporting and electronic transmission to tax authorities. The Making Tax Digital compliant software has a range of workflow tools, dashboards, and reports that allow businesses to visualise and track progress across the end-to-end compliance process — from filing preparation to approvals and submissions.
Please remember that Tax Matters provides information for educational purposes, not specific tax or legal advice. Always consult a qualified tax or legal advisor before taking any action based on this information. The views and opinions expressed in Tax Matters are those of the authors and do not necessarily reflect the official policy, position, or opinion of Vertex Inc.