Compulsory online filing of VAT returns and electronic payment of VAT: draft legislation

The Carter Programme is implementing Lord Carter's recommendations to increase online filing which were accepted by Government at Budget 2006. The recommendations include compulsory requirements for businesses to file their VAT returns online and to make payments electronically.

These regulations amend the Value Added Tax Regulations 1995 (SI 1995/2518, “the VAT regulations”). These amendments will provide new compulsory rules for VAT as follows:

• online filing of VAT returns and electronic payment of VAT, required for existing businesses with an annual turnover of £100,000 or more for accounting periods starting on or after 1 April 2010
• online filing of VAT returns and electronic payment of VAT, required for all new businesses with an effective date of registration on or after 1 April 2010 (whatever their turnover).

The draft amendment regulations (PDF 62K) are released today.

HM Revenue & Customs welcome comments on these draft regulations and would appreciate these by 3 July 2009. Any comments should be sent to Richard Askey or Paul Kinsey, preferably by email or to the following address:

HM Revenue & Customs
VAT Accounting, Registration and Exports
CT&VAT Products and Processes
Queens Dock
King's Parade
Liverpool
L74 4AA