On April 1, 2022, MTD (electronic filing) will become mandatory in the UK. Sellers who previously used a traditional gateway tax account will be required to use MTD in order to file their tax returns. According to the UK Revenue, in addition to not being able to file a tax return, any seller who owns a UK VAT will be required to file a tax return using MTD. Failure to use the online platform will result in penalties when filing a tax return.
On April 1, sellers on the UK site must use MTD.
From April 1, 2022, HMRC will make it mandatory for all sellers with a UK VAT to file using MTD.
This will be the case regardless of whether the seller's turnover exceeds £85,000. Sellers with a turnover of less than £85,000 should also be prepared for this!
That is to say, the seller has to:
① Electronic Storage Records
② Submit VAT returns through an IRD-certified software.
What is MTD and what is it used for?
MTD is an electronic tax return. It can be interpreted as follows: when filing VAT returns after April 1, sellers must choose an electronic filing software that is authorized by the United Kingdom Inland Revenue.
The role of electronic tax returns: to improve the accuracy of tax returns, reduce calculation errors, and make tax returns more efficient and convenient. (Note: In the past, the data were manually calculated and filled in)
Do I have to use MTD? What are the requirements for /MTD?
A: Yes.
From April 2022, HMRC requires full MTD coverage, regardless of whether the seller's FBA turnover exceeds £85,000 or not.
All tax agents are required to use the MTD declaration!
HMRC has replaced the system and implemented MTD. If sellers continue to use gateway, they will not be able to file UK VAT.
As the tax office will create the MTD directly, the gateway will no longer be stored in the newly created software. not only sellers, but all cross-border tax agents must use the MTD to file their returns.
The full name of the gateway is Government Gateway user ID. like MTD, it is a tax ID account consisting of 12 digits.
The difference between the two (before the IRD implemented the MTD tax filing policy): gateway tax codes can be filed on the account without relying on any other software, whereas MTD has to rely on the system software to file the tax return.
Green Circle as the official MTD digital reporting software certified by the British and German tax authorities, in addition to price concessions, professional and mature reporting experience, is a good choice for cross-border sellers.
V. Pay special attention to this point before and after joining MTD.
To avoid duplicate deductions on tax returns, do not enroll in MTD before the tax filing deadline, and businesses should make sure they are in:
01
(i) Join MTD at least 5 days after the last non-MTD VAT filing deadline.
02
② or join MTD at least 7 days before the first MTD VAT filing deadline to avoid paying VAT twice.
How should sellers prepare?
01
Choose an IRD-approved software.
02
② Register your VAT MTD according to the guidelines on the Inland Revenue Department's website.
03
③ License your MTD to the software of your choice.
04
④ Ensure that you use this software in your next report.
How to choose MTD declaration software?
HMRC requires sellers to choose a certified software for filing their returns. Green Circle self-referral is your best choice.
① The green circle is the MTD digital reporting software officially certified by the UK and German tax authorities (the UK and German tax authorities can be checked).
② connection to the British and German tax authorities API, VAT one-click declaration, the second under the return, the fastest 5 minutes to complete the declaration
③Manual + AI customer service, 24 hours at any time answer
④ Data security, cloud encrypted storage, you can manage and download data and information at any time.
How to make MTD declaration? You can click Register>>Green Circle, Green Circle will have a professional account manager to contact you. Green Circle vision: "Accompany the growth of global cross-border enterprises". If you have any questions, scan the code to add WeChat, and find a dedicated account manager to communicate with you in a timely manner.
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