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Which digital VAT changes affect you?
Based on GOV.UK and European Commission guidance. Income Tax dates depend on your income in each tax year.
The digital VAT changes that matter for UK businesses
| Change | Who it affects | When |
|---|---|---|
| Making Tax Digital for VAT | All VAT-registered businesses, unless exempt | Already in force |
| Making Tax Digital for Income Tax | Sole traders and landlords with qualifying income over £50,000, £30,000 and then £20,000 | From April 2026, 2027 and 2028 |
| UK e-invoicing | VAT-registered businesses issuing VAT invoices | From 1 April 2029 |
| EU VAT in the Digital Age | Businesses with EU VAT registrations or obligations | Phased in to 2035 |
Making Tax Digital for VAT: what you need now
- Digital records of your sales and purchases, which can be a spreadsheet.
- Digital links between records and your return: formulas or file uploads, not retyping.
- MTD software to file your VAT return.
See the features MTD VAT software must have.
UK e-invoicing from 2029
From 1 April 2029, VAT invoices must be issued as e-invoices, sent between businesses' software rather than as PDFs or paper. Your VAT return does not change. See preparing for UK e-invoicing.
EU VAT in the Digital Age
- ViDA is EU law. It brings e-invoicing and near real-time digital reporting for cross-border business sales within the EU, platform rules for some accommodation and transport services, and wider use of a single EU VAT registration.
- It applies to businesses with EU VAT obligations. A UK business is affected only if it is registered for VAT in an EU country or sells into the EU through EU schemes.
- It does not change your UK VAT return.
Making Tax Digital for VAT, sorted now, from £5 a month
Keep your digital records in a spreadsheet, upload the nine box totals as a CSV and file through MTD.
- Connect to HMRC on HMRC's own page with your Government Gateway sign-in. We never see that password.
- See your VAT periods, due dates, amounts owed and payments, read from HMRC.
- Upload your nine box totals as a CSV. Box 3 and Box 5 are worked out and every box is checked.
- Submit and keep HMRC's receipt. Reminder emails arrive before each due date.
No card needed · From £5 a month · Plans for up to 100 businesses · Filing through HMRC's MTD service since 2019
Final thoughts
For most UK businesses, the digital changes that matter are MTD for VAT now, MTD for Income Tax if you are a sole trader or landlord, and e-invoicing from 2029. ViDA matters only if you have EU VAT obligations. Keep digital records and digital links now, and each change is a smaller step.
Disclaimer: This guide gives general information, not advice. EU rules are set by the EU and its member states. Speak to an adviser if you have EU VAT obligations.
Frequently asked questions
Checked against VAT Notice 700/22, GOV.UK guidance on MTD for Income Tax, the UK e-invoicing roadmap and European Commission guidance on ViDA. November 2026.
What is VAT in the Digital Age?
Does ViDA apply to UK businesses?
When does e-invoicing start in the UK?
What does Making Tax Digital for VAT require now?
When does MTD for Income Tax apply?
Making Tax Digital for VAT, sorted now, from £5 a month.
Swift VAT Pro files your return to HMRC from the spreadsheet you already keep. From £5 a month.
No card needed · 2,900+ VAT returns filed since 2019