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VAT Reverse Charge returns now part of MTD

16 March 2020: businesses that are signed up to Making Tax Digital (MTD) for VAT can now submit their Reverse Charge Sales List (RCSL) returns digitally and have until 28 August 2020 to bring their returns up to date.

When MTD for VAT launched on 1 April 2019, there was no functionality to submit RCSL returns and HMRC had advised the relatively small number of businesses concerned to retain their records and information until the system was available to process the returns.

This functionality became available on 26 February 2020 and HMRC has set a deadline of 28 August 2020 for returns to be brought up to date without incurring a penalty.

VAT notice 735 which covers the VAT domestic reverse charge procedure which applies to the buying and selling of certain goods and services has been updated accordingly.