If you're VAT registered, your MTD quarterly updates include VAT data automatically. Here's what you need to track.
What's Different With VAT & MTD?
VAT registration doesn't change whether you need MTD — that's based on your income threshold. But if you're VAT registered, your accounting software handles both MTD income tax filings and VAT returns together.
VAT Invoices You Must Keep
- Every invoice you issue must show VAT separately
- Must include your VAT registration number
- Must include the customer's VAT number (if they're registered)
- Keep supplier VAT invoices — these prove the VAT you can reclaim
How MTD Handles VAT
Your accounting software calculates and tracks VAT automatically. Each quarter it files both your income update and your VAT return to HMRC in one step.