As you are already using compatible software the steps you need to take are minimal. However it is recommended that a review is undertaken of your VAT return preparation process to ensure that your current process is compliant with the new rules and your VAT codes are used correctly.
For example, a common error identified is exempt transactions being coded as either outside the scope or zero-rated rather than exempt. Under the new rules, businesses must have a record of output values per period split between standard rate, reduced rate, zero-rate, exempt and outside the scope and therefore coding errors like this will mean you are not compliant with the new rules. We also see confusion over the correct codes to use for transactions with suppliers and customers outside the UK.
Additionally, only certain manual adjustments are permitted under the new rules and therefore if your VAT return preparation process involves manual work you may need to configure your accounting software differently to automate some of this process.
Our specialist VAT team is happy to help with this.
