6. What is MTD enabled Software?
MTD enabled software is a software program or set of compatible software programs that must be able to:
• record and preserve electronic records in an electronic form;
• provide to HMRC information and returns from the electronic records in an electronic form and by using the Application Programme Interface (API) platform; and
• receive information from HMRC
7. What records do I need to keep as part of MTD for VAT?
The following records must be kept in an MTD compliant manner:
Designatory data:
• Business name
• Address of your principle place of business
• VAT registration number
• A record of any VAT accounting schemes used
For each supply you make:
• The time of supply
• The value of the supply
• The rate of VAT charged
For each supply you receive:
• The time of supply
• The value of the supply including any VAT that is not claimable
• The amount of input tax that you will claim.
Your VAT account, including
• The output tax due on sales
• The output tax due on acquisitions from other EU member states
• The tax payable on behalf of your supplier under a reverse charge procedure
• The tax that needs to be paid following a correction or error adjustment
• The input tax claimable from business purchases
• The input tax allowable on acquisitions from other EU member states
• The tax reclaimable following a correction or error adjustment
• Any other necessary adjustment required by VAT rules
