This error is displayed when the customer has not waited 72 hours for their VAT information to be migrated to the MTD service. This means that when the software attempts to call an obligation there is no data to return. HMRC recommend that agents and businesses should only attempt to submit a VAT return once [...]
Once you have submitted your first MTD for VAT return, you cannot go back to the old VAT 100 submissions, even if you fall below the VAT registration threshold. The only way to leave is to deregister for VAT.
HMRC recognise a CSV file as an acceptable form of digital link between the record keeping software and the MTD submission software.
Almost any software can interact directly with HMRC for MTD, but it’s a lot of work to do so. It is acceptable to use bridging software to submit the MTD for VAT return to HMRC.
Any record keeping software can be used provided it keeps the individual transactions in digital form and can transfer the data in digital form to an MTD enabled bridging software.
Some more complex VAT adjustments, for example, Flat Rate Scheme, must be made outside of bookkeeping software after the base data has been exported to a spreadsheet. Any adjustments must be recorded in the spreadsheet to preserve the digital record.
HMRC recognise spreadsheets as an acceptable form of digital record keeping. This will be accepted beyond the soft landing period.
HMRC recognise bridging software as an important form of digital transfer, and it will be accepted for MTD for VAT returns beyond the soft landing period.
You can download the example file here.
VAT reporting dates will not be affected by MTD for VAT. Businesses will report their quarters by the same deadlines. MTDfVAT can handle these dates.