According to VAT Notice 700/22: Making Tax Digital for VAT you can make adjustments to your VAT submission. The excerpt from the notice is below:
UK MTD Adjustments Making Tax Digital
Where you are allowed or required to adjust the input tax claimed or output tax you owe according to the VAT rules you must record this adjustment in functional compatible software. Only the total for each type of adjustment will be required to be kept in the functional compatible software, not details of the calculations under them.
If the adjustment requires a calculation, this calculation does not have to be made in functional, compatible software. If the calculation is completed outside of functional compatible software then digital links are not required for any information used in the calculation. However, using software for all your calculations will reduce the risk of errors in your returns.
The following rule has the force of law:
Where the input tax claimed or output tax due on a supply has been changed as the result of an adjustment you do not need to amend the digital record of the supply.
S4FN allows creating adjustments in SAP
The S4FN SAP MTD Add-On provides this flexibility via the UK MTD Cockpit. After you create the VAT Submission Record you can adjust it by creating a total adjustment value record for the boxes.
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Do you have any questions about MTD UK in SAP? Please contact us for more details and/or a demo session.
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