VAT review ― output tax

Produced by Tolley
VAT review ― output tax

The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • VAT review ― output tax
  • Making tax digital
  • Sales invoices
  • VAT accounting
  • Business promotion schemes
  • Incidental transactions
  • Corporate restructuring projects
  • Transfer of a business as a going concern
  • Private / non-business use or disposals of business assets (non-sale supplies)
  • Acquisition of assets via a TOGC into a partly exempt VAT group
  • More...

This document should be used in conjunction with this Checklist ― VAT review ― output VAT when either undertaking a VAT review or completing the VAT return. Business may also wish to undertake an input tax review at the same time and more information can be found in the VAT review ― input tax guidance note and the Checklist ― VAT review ― input tax template.

Making tax digital

The introduction of MTD should enable businesses keeping digital records to have better control of invoices, expenses and payments made and received. HMRC hopes that MTD will reduce the number of mistakes and errors made by businesses. Businesses currently moving onto MTD may find the information below useful when checking that the digital records are accurate and are producing the correct VAT return information.

See the Making Tax Digital ― signing up for MTD and Making Tax Digital ― VAT ― returns and compliance guidance notes for more information.

Sales invoices

Businesses must ensure that they issue a valid tax invoice to all relevant customers. More information can be found in the Tax invoice requirements guidance note.

If the business issues electronic invoices then they must ensure that these invoices meet the relevant requirements outlined in the Electronic invoicing guidance note.

If the business has agreed with its customer to issue self-billed invoices then they must ensure that the relevant conditions are met. More information can be found in the Self-billing guidance note.

VAT accounting

It is necessary, even for business signed up for MTD to ensure that transactions are accurately recorded in their books and records and for all information that digitally feeds into the VAT return figures is complete and accurate. Details of the most common issues that businesses need to consider when undertaking a VAT review or completing a VAT return can be found below.

The business must ensure that it records its transactions in the books and records so the amounts are included in the correct VAT return period and that

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