Electronic VAT Returns

Alan Taylor

Although it has been possible to submit electronic VAT returns for a number of years now it is going to become compulsory. All newly VAT registered businesses, as well as those with a turnover in excess of £5.6M, will have to submit VAT returns electronically after the end of March 2008.

Almost all other businesses who currently submit returns in the post will also have to submit their VAT returns electronically after the end of March 2010. The remaining exceptions will the smallest businesses with a turnover of less than £100,000. Presumably HM Revenue & Customs do not want to force these smaller businesses to purchase computer equipment that may not be able to afford. Naturally there will be penalties for those businesses who do not comply or who submit the electronic returns late.