In this section:
- VAT Returns: how to complete and submit a return box-by-box
- Flat Rate Scheme VAT Returns: how to complete and submit one
- When transactions take place for VAT purposes
- Accounts and records for your VAT
- Deadlines for your VAT Return and payment
- Submit your VAT Return or ESL online on the HMRC website
- What to do if you made a mistake on an earlier VAT Return
- Reminders and alerts for your VAT Returns by email
- How to sign up to use VAT online services
- Submitting your VAT Return using XML services
- Missing VAT Returns: telephone HMRC to obtain a replacement
Submitting your VAT Return using XML services
XML is a quick and easy way of submitting your VAT Return electronically. If you use accounting software that's XML-enabled, you can submit your return almost instantly without having to fill it in by hand or online.
If you file your VAT Return using XML, HM Revenue & Customs (HMRC) may give you extra time to pay. And because it's a type of online submission, you'll be ready for the switchover to mandatory online submission when it's introduced in the future.
Many accountants already use XML software. So if you use a tax agent or adviser to submit your return you may not need to do anything further.
HMRC produces information to help software developers build packages that can work with their systems. They also offer a software testing service.
On this page:
- What is XML submission?
- The benefits of XML submission
- How to submit your VAT Return using XML
- XML submission information for software developers
What is XML submission?
XML (extensible mark-up language) is a simple and widely accepted way of structuring information. It's used for sharing data quickly and easily between computers.
HMRC can accept VAT Returns electronically from software packages that use XML. This means that if you have XML-enabled software you can send HMRC your completed return electronically at the press of a button.
If you want to start submitting your returns electronically using XML then you'll need an accounting software package that has this feature. Your existing software may be able to do this, or you may be able to upgrade it.
Various suitable software packages are available from independent software developers. HMRC lets software developers test their XML software to make sure it will submit VAT returns properly.
See a list of XML enabled VAT return software
If you're a software developer and you want to test your product against HMRC systems, see the section below on XML filing information for software developers.
The benefits of XML submission
Using XML-enabled software to file your VAT Return is the quickest and easiest option. It's much quicker than using a paper return, and it's easier than filling in the form on the HMRC website. It's more reliable too. Because the information is sent directly from your accounting software, there's much less chance of making mistakes like typing in a figure incorrectly or putting the wrong figure in the wrong box.
Once you've checked your return on screen, all it takes is the click of a button to send it to HMRC almost instantly.
Mandatory electronic submission
In the future, HMRC plans to stop accepting paper VAT Returns. All businesses will have to submit them electronically. By switching to XML submission, you'll be ready for this change when the mandatory online submission deadline comes around.
Find out more about the switch to online submission for VAT
How to submit your VAT Return using XML
To submit your return using XML you'll need to make sure the accounting software you use has this feature. Check the software documentation - your existing software might be XML-enabled. If not, you may be able to upgrade to a newer or more advanced version.
If you don't use accounting software but you want to switch to XML submission, you'll need to choose a suitable software package.
See a list of XML-enabled accounting software on the HMRC website
Even if you don't intend to switch to XML submission straight away, it could make sense to choose an XML-enabled package when you choose an accounting software package.
Once you start submitting your VAT Returns using XML you won't need to send paper returns or fill in the form on the HMRC website.
Registering for online services
You'll need an Internet connection to be able to submit your returns electronically, and you'll need to be registered with HMRC for VAT online services. If you're already registered then you can start submitting electronically any time you want to.
Because XML submission is a type of online submission, you'll have to pay any VAT due to HMRC by one of the approved electronic methods - you can't send a cheque or postal order. Direct Debit is a safe, easy and reliable way of paying the VAT that's due. If you pay electronically by Direct Debit you'll get up to an extra seven days from the standard due date to submit your return to HMRC. They'll collect the payment from your bank account three banking days after that.
Find out how to register with HMRC for VAT online services
Read about the different ways of paying VAT
Using a tax agent or adviser
If you use a tax agent or adviser like an accountant to submit your VAT Return then they may well already use XML submission. If they do, you won't need to be involved - they're using the quickest and most efficient method of dealing with your returns.
Find out more about using an agent or adviser for your VAT affairs
XML submission information for software developers
If you're a software developer and you want to produce an XML-enabled package to work with HMRC systems, there's information available to help you. If your business uses bespoke accounting software rather than an off the shelf product, you could add XML submission to the specification and refer your provider to this information.
HMRC has produced an Internet Service Technical Pack for software developers to help them build products that are compatible with HMRC systems and communications protocols. You can download the Internet Service Technical Pack from the HMRC website.
HMRC offers a testing and validation service for VAT Online software products that use XML submission. You can use this to make test submissions to the VAT Online service.
If your product tests successfully, HMRC will list it on their website.
Refer to the Internet Service Technical Pack for software developers
