The requirements will only apply to businesses over the UK VAT registration threshold (currently £85,000).

This creates the following requirements:

• Storing data digitally on functional compatible software package
• Calculation of VAT liabilities by the automated software
• File the 9-box UK VAT return data via the HMRC’s JSON API platform, under the ‘API First Strategy’. This replaces keying-in or the existing XML API
• New authentication process
• Receive digital information in return from HMRC
• A controlled process around adjustments and error corrections

The following data must be stored digitally:

• The business name
• The address of the principle place of business
• VAT registration numbers
• A record of any VAT accounting schemes that are used
• For each taxable supply:
  • The time of supply
  • The value of the supply
  • The rate of VAT charged
• For each VAT return submitted:
  • The output/input tax
  • The output/input tax on acquisitions from other EU member states
  • The tax required to be paid/reclaimed under the reverse charge for supplies
  • Any tax to be paid following a correction or error adjustment