Compliance5 min
UK Making Tax Digital: A Checklist for E-commerce Businesses
What MTD actually requires, the records you must keep digitally, and a simple readiness checklist for online sellers.
Making Tax Digital (MTD) requires VAT-registered businesses to keep digital records and file VAT through compatible software. For e-commerce sellers with high transaction volumes across multiple channels, getting the plumbing right early saves a painful scramble later.
Your MTD readiness checklist
Work through these in order:
- Use MTD-compatible software (Xero, QuickBooks) as the system of record.
- Connect every sales channel so digital records are complete, not partial.
- Maintain the digital link between your records and your VAT return — no manual copy-paste.
- Reconcile marketplace payouts to revenue and fees each period.
- File quarterly VAT through software, not the old portal.