Making Tax Digital (MTD) in the UK is HMRC’s new digitally advanced tax system. In the first phase, MTD focuses on VAT and all businesses with a turnover above the VAT threshold are required to keep digital records and submit VAT returns electronically through MTD-compliant software like the S4FN MTD UK SAP add-on.
Reporting Format: The electronic format needs to be a structured XML format or an unstructured PDF format.
Who is not impacted:
Businesses that are not VAT registered. Businesses who are exempt from online VAT submissions. Making Tax Digital will not be mandated for taxes other than VAT until at least April 2020. Businesses with a taxable turnover below the VAT threshold in the twelve months leading up to 01.01.2019 or any twelve-month period.
Which data need to be filled in:
Box 1: VAT due in the period on sales and other outputs Box 2: the VAT due in the period on acquisitions from other member states of the EU Box 3: total VAT due Box 4: VAT reclaimed in the period on purchases and other inputs (including acquisitions from the EU) Box 5: net VAT to pay to HMRC or reclaim Box 6: total value of sales and all other outputs excluding any VAT Box 7: the total value of purchases and all other inputs excluding any VAT Box 8: total value of all supplies of goods and related costs, excluding any VAT, to other EU member states Box 9: total value of all acquisitions of goods and related costs, excluding any VAT, from other EU member states.
Do you have any questions about MTD UK in SAP? Please contact us for more details and/or a demo session.