Making Tax Digital for VAT

Making Tax Digital for VAT is a UK government system that requires all VAT-registered businesses to keep digital records of their VAT transactions and submit VAT returns electronically using HM Revenue & Customs (HMRC) approved software. It aims to simplify VAT reporting, reduce errors, and improve compliance by replacing traditional paper-based VAT returns with digital submissions. MTD for VAT became mandatory for all VAT registered businesses from April 2022, regardless of turnover.