Anyone who is VAT-registered (which includes many farmers) must submit their VAT returns online from this spring.
Currently, only newly-registered businesses and those with turnovers of more than ÂŁ100,000 have to submit their VAT online, as well as pay electronically. Anyone else can send HM Revenue and Customs (HMRC) a paper VAT return, if they wish.
That is changing from April, when all 1.9 million VAT-registered businesses in the UK will have to submit their VAT returns online, and pay electronically, for accounting periods beginning on or after 1 April 2012.
Every VAT-registered trader not already required to submit online will receive a letter from HMRC in February, advising them of the change, and what steps they need to take.
At the end of last year, almost 17,000 businesses in Wales were still filing paper VAT returns.