Why is this software necessary

VAT notice 700/21 makes it clear that all VAT-related data must be kept in a digital form, and all transfers of data must stay digital via "digital links".

This software exactly fits the description of "Example 3 - Using a spreadsheet and bridging software" in the HMRC guidance, allowing RM to submit VAT returns directly from our digital records.

"Functional compatible software" is a software program, or set of software programs, products or applications, that must be able to:

1. record and preserve digital records
2. provide to HMRC information and returns from data held in those digital records by using the API platform
3. receive information from HMRC via the API platform

HMRC expects that "there will be software products available that will perform all of the functions listed above. Some software programs will not be able to perform all of these functions by themselves," and states that they will accept CSV import and export as a "digital link".

This tool may be expanded in the future to encompass additional functionality as needed to support the correct and accurate submissions to HMRC.