The tax authority has published a response document to a technical consultation on amendments to VAT legislation to clarify that an alternative form of electronic filing (ie, telephone filing although this is not mentioned in the draft legislation) will be available to some taxpayers and taxpayers that satisfy certain criteria will not be required to file their VAT returns using an electronic return system.

The response document says HMRC is making improvements to the telephone filing service, but will only approve businesses to use the service where they are satisfied that it is not reasonably practicable for them to file online in the way currently required.

This should satisfy feedback to the consultation, where respondents supported the proposal to extend the exemptions from online filing and the retention of an appeal service for refused exemptions.

HMRC explained that although the draft regulations made no explicit reference to telephone filing, for the avoidance of doubt, the revised regulations will allow HMRC to issue a direction approving the use of a specific form of electronic return system, such as telephone filing. This will be treated as a form of electronic return system for use by specified categories of persons.

An update will be published by HMRC to this effect shortly.

The response document is available at https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/325791/VAT_electronic_filing_summary_of_responses.pdf

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