What Is VAT return?
VAT return must be submitted to HMRC on a regular basis, usually quarterly. The VAT return shows the amount of tax charged by businesses, the amount of input tax paid by the business and the amount of VAT that the business must pay to HMRC. It’s vital that VAT returns are submitted on time and that the amounts are correct. If you’re not compliant you can be fined or even face legal action.
Making Tax Digital (MTD) for VAT was introduced in 2019. All VAT-registered businesses must keep digital tax records and use MTD-compatible software to electronically submit their VAT returns.