There could be a number of reasons as HMRC are not giving us a code to explain the true error, lets check these most common steps out first:
- Have you registered on HMRC Gateway for Making Tax Digital for VAT?
Important: businesses should not register for MTD for VAT until they have filed their last return through the old xml route. This is because sign up migrates their record to the new HMRC MTD system and closes off the xml channel.
You must sign up on the HMRC Gateway for this mandatory process. HMRC say that you must sign up at least one week in advance, The link they provide to take you through the steps is here:
- VAT Number matches exactly with a VAT number on the account you have registered for above?
You can authenticate the software using your existing HMRC Gateway Credentials, but HMRC do not check this with the VAT number that you entered into our software, the only check is when you start to use the VAT Number for calls to the HMRC system
- You have selected the VAT number you want to use?
Make sure you are using the VAT number that you require – as you will get an error back if you try to submit the incorrect VAT number, as this will not be authenticated.