Making Tax Digital – HMRC SAP MTD Add-on

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 S4FN MTD UK SAP add-on.  

Reporting Format: The electronic format needs to be a structured XML format or an unstructured PDF format.  

When & Who is Impacted:

  • VAT period starting on or after 1 April 2019.
  • VAT registration threshold of £85,000 will need to keep VAT records digitally and file their VAT returns.

Who is not impacted:
  • Businesses who are not VAT registered.
  • Businesses who are exempt from online VAT submissions.
  • Making Tax Digital will not be mandated for taxes other 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:
  • 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
Contact for more information.