Demystifying Making Tax Digital for VAT (‘MTDfV’) – Box 6 split
15 March 2019
Published by: Amit Dev - Tax Technology lead
Digital links + digital filing, that’s it for MTDfV – right?
Just as important as digital links and digital filing is the requirement, buried within the depths of the MTDfV legislation, to ensure that your Box 6 (sales) figure is accurate and can be accurately split into totals of supplies made that are subject to the same VAT treatment.
This also means that you will need to ensure that you accurately record the time of supply for each supply that you make. For example, if you’re supplying goods and take a deposit in advance of (i) the delivery of the goods and (ii) the issue of a VAT invoice, then you should check whether the time of supply is recorded correctly, ie is VAT accounted for on the deposit in the right VAT return period?
Read more on Making Tax Digital for VAT: get the basics right.