Goodbye VAT portal, hello VAT Registration Service: The latest on Making Tax Digital for VAT

Making Tax Electronic (MTD) for VAT is component of a broader federal government initiative to simplify the tax method.

In April 2022, the MTD for VAT plan was designed necessary for all remaining VAT-registered enterprises who had been not maintained in 2019, meaning they ought to all now use Creating Tax Electronic-compatible software program to keep electronic data and submit their VAT returns to HMRC.

As component of this, VAT registrations have also improved.

On 1 August 2022, the new VAT Registration Service (VRS) was rolled out, and this new course of action makes sure every single business enterprise is routinely signed up to Producing Tax Electronic when they register for VAT, taking away the need to have for you to choose that added stage.

If you’ve encountered challenges when registering organizations for VAT as an agent or are doubtful of the recent needs for Producing Tax Digital for VAT, we’ve received all the most current facts you need to assure you and your clientele remain up to date.

Here’s what we address in this article:

Closure of the Generating Tax Electronic for VAT sign-up journey

You may possibly have currently registered a amount of clients for Generating Tax Electronic for VAT by means of the on the net signal-up method, but from now on it won’t be offered.

Heaps of firms have now signed up to MTD for VAT, and HMRC has signed up all remaining enterprises immediately, unless they are exempt or have used for an exemption.

So you will no for a longer time want to indicator up your clientele.

If you need to utilize for an exemption from MTD for VAT for any purchasers for whom it is not sensible or simple to use a personal computer or the world-wide-web, you need to have to stick to the exemption application procedure.

HMRC will take into account each application on an personal foundation and apps are getting processed as immediately as feasible.

Closure of the VAT portal

The HMRC on the net VAT portal was shut on 1 November 2022.

This was completed to guarantee all non-exempted VAT-registered companies stick to the new Building Tax Digital process and can no for a longer time file their tax returns on the net by using their on-line VAT portal which is successfully the ‘pre-MTD’ route.

These businesses really should have currently switched to Building Tax Digital suitable computer software in order to file their month to month or quarterly VAT returns.

However, the on the web VAT return portal does remain readily available for organizations who filed for their electronic exclusion exemption just before the portal closure day.

What is the new VAT Registration Assistance for brokers?

Just one of the essential changes made by the VAT Registration Services is to routinely sign up new companies for MTD for VAT.

Letters from HMRC about your client’s software position, which includes their VAT Registration Selection, will be issued to your deal with as properly as the client’s principal put of enterprise as provided in the application.

As an agent registering on behalf of consumers underneath the VRS, you will have to have both an Agent Companies Account (ASA) ID and password, or your HMRC On the net Services account ID and password.

HMRC has encouraged the fastest and most straightforward way to sign-up a consumer for VAT is to use an Agent Solutions Account and to stick to these actions to sign-up for VAT on line.

You are going to want to present your name, mobile phone selection and e mail handle. If you determine to use your old HMRC Online Providers account specifics, you will be asked for more info to validate your identification.

So far on this journey, some accountants have encountered troubles with the new VAT Registration Services.

The primary troubles are concerning delays, with a range of accountants ready involving two and 3 months for an application to be processed.

A lot of folks have complained about obtaining unhelpful status update letters and not currently being ready to get hold of the helpline.

To give you an indicator of procedure times, on 25 Oct 2022, the ICAEW Tax Faculty claimed VAT registration applications have been normally getting all over 40 operating times to process.

If you need to have to adhere to up an software you can speak to HMRC just after 40 working days have elapsed by sending an e mail or by calling 0300 322 7870.

HMRC has by now built some updates to the services based on the feed-back it has received so significantly and there are far more improvements in the pipeline.

For example, if you’re waiting for facts from your shopper, you can now conserve an application sort in draft for 28 days this was greater from 7 times.

A activity record check out has also been released to allow an agent to edit the reply of a specific query with out clicking through the overall sort.

And a digital add attribute has been extra to enable supporting files to be hooked up to the registration.

Final thoughts on where by we are with Earning Tax Digital for VAT

All VAT-registered businesses have now been signed up to MTD for VAT possibly through the previous sign-up approach or instantly by means of VRS, which suggests every single business should now be applying MTD-compatible software program to retain electronic documents and post VAT returns.

The current closure of the on line VAT portal was the last action in moving all non-exempted businesses more than to the new digital VAT return system.

HMRC is now operating by all remaining teething challenges made by the new VAT Registration Company to make sure speedy and successful VAT registration likely ahead.