What is MTD for VAT?

Key facts:

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MTD for VAT is the specific phase of MTD covering VAT returns made by businesses to HMRC. These VAT returns will need to be made through the new MTD for VAT system but importantly the sales and invoices that make up the VAT return must be stored on computer and linked through to the VAT return. That’s the big difference from the current web form for VAT returns that 98% of businesses use already.

Fuller explanation:

Once a business has switched to MTD for VAT, it will no longer be able to submit the web-based VAT return. The VAT return must be made by compatible software that HMRC has checked out. This software must store or link through to the records that make up the VAT return. So, it must be possible to see, from the original records, how each box in the VAT return was calculated.