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