Have you applied the most recent patch update for Microsoft Dynamics GP so you are ready to digitally submit UK VAT taxes to the HMRC? The 'making tax digital' (MTD) requirement by Her Majesty's Revenue and Customs (HMRC) was first effective on April 1, 2019, where VAT registered businesses (above a VAT threshold) must keep records digitally and submit the VAT Return electronically. I have provided some Q&A below to help you meet these new filing requirements:
SUPPORTED GP VERSIONS FOR MTD:
• The HMRC requires TLS 1.2 to be used which was added in Dynamics GP 18.3.1200 (or higher). Prior GP versions will no longer work, so you must upgrade past this build to satisfy the TLS requirement for submission. It would be recommended to be on Microsoft Windows Server 2019 or later with the TLS requirement or you may run into errors during connection.
If you are still on Windows 2012 or 2012 R2, you may run into TLS issues at login, stating page cannot be displayed due to TLS. You need to upgrade your windows or login from a different machine/OS.
• If you are on Dynamics GP 18.5, the January Hotfix - 18.5.1635 or later should be applied.
NOTE: If you recently upgraded to 18.5 and notice when you submit to HMRC the window appears with no obligation periods showing (see screenprint below), try to log in as the 'SA' user and run GP as an Administrator. Also try to toggle the checkbox for 'Use UK VAT Making Tax Digital' checkbox. (Go Cards | Company | UK Electronic VAT Setup and unmark the checkbox for 'Use UK VAT Making Tax Digital'. Save and close the window. Then go back to it and mark the checkbox again and save and close the window and test again.)
COMMONLY ASKED QUESTIONS:
1. Is the new MTD functionality available for all Microsoft Dynamics GP versions?
No. The HMRC requires TLS 1.2 for submission, therefore you must be on Dynamics GP 18.3.1200 (or higher) to satisfy this requirement (where TLS 1.2 was a new feature).
The new MTD functionality was first included in the 2019 February Hotfix for Microsoft Dynamics GP 2018 (18.00.0704) and Microsoft Dynamics GP 2016 (16.00.0741). However, these versions no longer satisfy the requirements from the HMRC for submission. Only versions of GP 18.3.1200 or higher will work.
UPDATE: There was a dll issue in GP 18.5 that was fixed in the Jan 2023 HF. In order to file successfully to the HMRC, you should be on these versions:
- VAT 100 - 18.3.1200 through 18.4.1461, or 18.5.1635 (Jan 2023 HF) or higher (log in as 'sa' user)
- VAT Daybook - 18.4.1434 through 18.4.1461, or 18.5.1635 (Jan 2023 HF) or higher (log in as 'sa' user)
2. Is there a demo/documentation of the new MTD functionality?
Yes, review this document: Documentation on the new electronic filing feature.
3. How do I enable the new MTD functionality on my existing environment?
On GP 18.3.1200 or higher, go to the UK Digital VAT Setup window (Cards | Company | UK Electronic VAT Setup), and mark the checkbox to 'Use UK VAT Making Tax Digital'.
(Note: Dynamics GP 18.00.00704 and higher versions will also have this functionality/window, however, you must be on GP 18.3.1200 or higher in order for it to work successfully.)
4. What should I be aware of before generating a VAT Return ?
Before generating a VAT Return (for VAT 100 or VAT Daybook), be sure to:
• Specify your company's tax registration number in the Company Setup window (Tools | Setup | Company | Company)
• Verify that all your Debtors and Creditors have a COUNTRY CODE on their Debtor/Creditor Maintenance window. (Cards | Purchasing | Debtor or Cards | Sales | Creditor). The Debtor/Creditor will be skipped if the country code is missing. (Consider creating smartlists on the 'PM Vendor Master File' [PM00200] and/or 'RM Customer Master' [RM00101] tables for the front-end user to review.) The Country Code is now a required field in order to have the debtor/creditors tax transactions pull on to the VAT Return. (NOTE: Country codes are NOT required for VAT Daybook.)
select * from PM00200 where CCode = '' and VENDSTTS <> 2
select * from RM00101 where CCode = '' and INACTIVE = 0
• Make sure to print all the VAT detailed reports and compare the totals to the VAT Summary report to help identify any discrepancies.
5. On the VAT Return window, how do I submit it electronically?
Refer to the steps in this blog for both VAT 100 and VAT Daybook.
For VAT 100, when you enter your VAT Report ID and the YEAR you tab off the Year field, you will be launched to the HMRC_Log_in, where you will log into the HMRC software with your Government Gateway account and access code.** Save the return and your amount totals will be editable. Be sure to mark the 'Final Return' checkbox to enable the SUBMIT button. Once it is submitted you cannot edit the numbers, verify it is all correct prior to marking Final Return and submitting.
**If this does not launch for you automatically, your firewall may be blocking it and you will need to allow for it.**
Example: www.gov.uk or https://api.service.hmrc.gov.uk
6. What do I do if the VAT summary return does not match the totals on the VAT detailed report?
Best practice is to always print all the Detailed reports for your VAT Return as well and COMPARE to make sure totals between the reports match. If the two reports don't match then investigate what makes up the difference. (Remember that the amount fields on the VAT 100 Return ONLY are editable, so you can update the amounts at your own discretion before submitting the return. You may need to SAVE the return first and go back into it and the fields should be editable. But once you mark the FINAL RETURN checkbox, then the fields are locked down.)
7. Can I generate the VAT Return without launching to the HMRC site?
Yes. Simply unmark the checkbox noted in Step 3 above for 'Use UK VAT Making Tax Digital', and then when you enter the date range and generate the Return, the HMRC site will not launch.
8. Where can I find more information on installing the VAT Return module?
More information on installation/setup can be found in this blog article:
Microsoft Dynamics GP: Information about the VAT 100 Return
9. How do I set up the VAT Daybook report?
Review KB 313950 - Set up VAT Daybook reports in Microsoft Dynamics GP
10. If you receive an error message such as: Bad Request INVALID_Request PERIOD_KEY_INVALID or
Bad Request VRN_INVALID, how do I fix?
• Make sure there are no spaces in the VAT Registration number.
• For VAT 100, delete the return and regenerate it.
• For VAT Daybook, the period key is not filled in to the VAT00400 table until you submit the file.
• The software will see different period key formats for different customers in MTD, depending on where their records are held in HMRC’s systems. The majority of customers will have alpha numeric period keys (e.g. 18A1) and will not have any open obligations for periods prior to joining MTD. However, customers with a fully numeric period key e.g. 0419 will be able to see open obligations for periods both before they have signed up to MTD and since joining MTD. You may experience problems where the ‘Get Obligations’ API end point is showing these numeric period keys as open, despite the VAT return having been submitted and the software having received a success message. HMRC is working to update these obligations at the earliest opportunity. Users should not attempt to make a further submission for a period already submitted, as this will not resolve the issue. HMRC is aware of some instances, where the obligation for a numeric period key is not viewable. HMRC is urgently reviewing requirements and providing changes as needed. When the period key is in an alphanumeric format, which is the case for the majority of customers, you should not encounter any problems.
Note: There is not a way for Microsoft Dynamics GP to know what the period key is for a customer, you would need to contact your HMRC office for that info to see if you are affected.
• For a list of all MTD error codes review the HMRC site.
11. When I tab off the YEAR field I get the message "No Obligations found for the year 2022" or "No Obligation periods found in year 2022" is given. What does this mean?
• (NEW) Your authorisation or authority may have expired. The Authorised Software Applications window on the HMRC website may display the date that Authority was granted on. Note that your Portal access authorisation only lasts for 18 months, so your submission access may have expired. Contact the HMRC to re-register your account for access. If this still doesn't work, you may also try submitting from a different workstation. Typically you get this error first "(407) Proxy Authentication Required" followed by this error "No Obligations found for the year 2022".
• (NEW) For VAT Daybook, make sure all prior periods are marked off correctly in the VAT Calendar table (EDCVAT03) with the correct naming convention of 'VAT REPORT ID' USED + YEAR + INCREMENT, such as GBVATRET20220100 for P1 of year 2022 and using the 'GBVATRET' report ID. If you have trouble with submitting later periods, but sure that all periods of the 'same' year have the same naming convention with the increment such as GBVATRET20220100, GBVATRET20220200, GBVATRET20220300, GBVATRET20220400, etc. Do not populate varied RETNUM values in the EDCVAT03 table simply to mark the period off. Use the correct naming convention so the RETNUM for all periods is consistent. (If the RETNUM exists in the TX30000, then it must also exist in the EDCVAT03 table in order to reprint it at a later time.) Typically the error references the 'periods' such as "No obligations found for period 0."
• This message can happen if there are currently no VAT periods or obligations periods found on the HMRC site for which your company must report VAT. Log onto the HMRC site directly (outside of Dynamics GP) and verify there are open obligation periods for your account.
• You may also receive this error if you are not logged in as user 'SA'. Try the same steps logged in as user 'SA'. Or install latest hotfix released April 2019.
• If you are using the VAT Daybook window the VAT Calendar setup needs to match the HMRC site for obligation periods exactly. If it does not, you will receive this error message. For VAT Daybook, ensure the VAT Daybook calendar is set up on a calendar year, so all period dates fall within the same calendar year.
• If the obligation deadline has passed, or you submitted by other means, you will receive this error until there are new obligations for the next reporting period.
• For VAT Daybook, use the 'GB' country code. It is not able to validate on other country codes created yourself. Error seen is: "No Obligations found for the year 0."
• It is also recommended to run a Fiddler trace of the submission, this may show you an error message and the problem of no obligations are found.
Example we have seen some cases with a 502 error code, No connection could be made because the target machine actively refused it. Based on HMRC guidelines, we are using this for the redirect/response, when we are sending back to this machine for this company it is denying it.
The customer needs to allow port 8080 on their proxy/firewall as the error indicates something is stopping the connection.
You should also review any anti-virus software that could interfere with web protection to see if an exception needs to be made.
• There have been a couple of cases where you get this error and if you run a Process Monitor log you will see a result of NAME NOT FOUND with the "no obligations error found for the year" when calling the GPConnNet.dll, specifically on Microsoft Dynamics GP 2016. This DLL is typically located at this location:
C:\Program Files (x86)\Common Files\Microsoft Shared\Dexterity\v2.0
What has worked is if you copy the file from this location and paste it to the GP code folder, example location:
C:\Program Files (x86)\Microsoft Dynamics\GP\ (or whatever you named your GP code folder)
Now try to test the VAT return again.
• This message can happen if using GP 2016, or GP 2018 (Prior to 18.2) and the TLS version is out of date due to the VAT100ElectronicSubmission.dll version out of date. Verify that the VAT100ElectronicSubmission.dll file exists in the GP code folder. Default location is: C:\Program Files (x86)\Microsoft Dynamics\GP\ (or whatever you named your GP code folder)
• Verify you do not have a DNS alias name for your server in the ODBC connection rather than the actual SQL Server name. The response back from the HMRC site may not be received if you are using a DNS alias name for your server. Try to submit as the 'sa' user, or create a new ODBC that points to the actual SQL server name.
• Check to make sure the HMRC site is not down for maintenance.
• Scroll down and review the 'ERROR GUIDE' section at the end of this article as well.
12. The HMRC does not accept negative numbers. I have negative numbers on my VAT summary report. Will my return be rejected?
The HMRC accepts negative numbers in all boxes except Box 5. Box 5 is automatically calculated by the gateway, so the number in box 5 is passed as an absolute value.
Dynamics GP also has validations coded where Box 9 cannot be greater than box 7 for purchases, and box 8 cannot be greater than box 6 for sales, even if you are not using EU tracking. This will prevent submission of negative numbers in Boxes 6 and/or 7, if boxes 8 and/or 9 do not match. Messages prompted are “Total EU purchases must not exceed the total purchases amount.” and “Total EU sales must not exceed the total sales amount.”. This issue was fixed in the Oct 2020 Fall release (GP 18.3) to remove all validations.
13. The total amounts in box 6,7,8,9 are missing SOP/POP transactions on the VAT DAYBOOK summary report (but the detailed reports are correct). What are the work-arounds to get this filed to the HMRC so I do not miss a deadline?
This was fixed in the Oct 2020 update for GP 18.2.
• As a work-around, use the VAT 100 Return instead to file. The VAT 100 return will pull all tax codes for your date range to calculate totals for each box on the return. The 'total amount' boxes are also editable if you just need to get it submitted electronically to meet a deadline. (If you edit totals make sure those transactions also get marked off in the TX30000 table, so they are not pulled again on a future return.) Also remember that all debtors/creditors are required to have the Country Code field populated in order to pull on to the VAT 100 return. (CCode field in PM00200/RM00101)
=======================================================
ERROR GUIDE:
• message: BUSINESS_ERROR DUPLICATE_SUBMISSION The VAT return was already submitted for the given period
This error means that the next submission number did not get incremented and is trying to reuse the same number as the last submission. The next number should increment when the response is received back. First, verify the next submission number in the VAT40100 has not been used (against the VAT00100/VAT00400). If using VAT 100, delete the return, update the next submission number in the VAT40100 table and then regenerate the return and try to submit it again. For VAT Daybook, it did not commit, so just update the VAT40100 and then generate the return again and try to submit it again.
update VAT40100 set Submission_Number = (Submission_Number + 1)
• "code":"NOT_FOUND","message":"The remote endpoint has indicated that no data can be found" followed by "No Obligation periods found in year 2020".
This error can happen in VAT Daybook if the period dates do not match the VAT Daybook calendar year setup. For example, if filing for the Jan-Mar 2021 quarter, it should be on the VAT Daybook calendar for the '2021' year. VAT Daybook requires the period dates to be in the same calendar year. I you desire to use a Fiscal year setup, you much use VAT 100 instead.
• "code": "MATCHING_RESOURCE_NOT_FOUND", "message": "A resource with the name in the request can not be found in the API"
This error is specific to a 3rd party product for API Manager.
• Bad request {"code". INVALID REQUEST, message, Invalid request errors {Code PERIOD_KEY_INVALID message period key should be a 4 character string path /periodKey
VAT 100 - This error can happen if the periodkey field in the VAT Return header table (TX00300) is blank, which can happen if the user made a change in the VAT return window for VAT 100. To resolve this issue, delete the VAT Return and regenerate it again so this field is populated.
VAT Daybook - the Periodkey is populated on the VAT00400 table after you have submitted to the HMRC and received the response back. Try to submit again. (If no luck, try using VAT 100 instead to file so you do not miss any deadlines.)
This can also happen if there are spaces in the VAT Registration number in Company setup.
• "No Obligations found for the year 0."
Typically this error is received when using VAT Daybook and can have many causes including:
1 - If you made up your own country code and did not use the default the 'GB' country code on your VAT Daybook report setup.
2 - Review the VAT Calendar (EDCVAT03) to ensure that all prior periods are marked off correctly and the correct naming convention is used in the RETNUM column.
3 - If this error is received on the 'Audit Reprint' report in VAT Daybook, the 'next number' (VAT40100) cannot be at the default of '000001'. If the next number has not been incremented, then the system will not recognize any are completed and not allow access to the Audit Reprint option.
• "No Obligations found for period 0."
Typically this error is received when using VAT Daybook. Review the VAT Calendar (EDCVAT03) to ensure that all prior periods are marked off correctly and the correct naming convention is used in the RETNUM column. The correct RETNUM naming convention is the VAT REPORT ID + year + increment of 0100,0200,0300, etc. such as GBVATRET20220100 for P1 of year 2022.
• The remote server returned an error "(407) Proxy Authentication Required", and the "No Obligations found for the year 2022".
The Authorised Software Applications window on the HMRC website may display the date that Authority was granted on. Note that your Portal access authorisation only lasts for 18 months, so your submission access may have expired. Contact the HMRC to re-register your account for access. If this still doesn't work, you may also try submitting from a different workstation.
I hope the above information will be helpful to you so you can utilize this new functionality and get your VAT Return filed electronically!
Cheryl Waswick
Senior Technical Support Engineer
Microsoft Dynamics GP Support
