Microsoft Dynamics GP: Group VAT filing for multiple companies with VAT 100 Return

Are you tired of submitting VAT taxes to the HMRC for each company?   Do you wish you could submit the VAT Tax Return for all your companies at once?   Well now you can!  You will be excited to learn that the June 2021 release includes new functionality that will allow you to submit the VAT Tax Return for multiple companies at once from the VAT Tax Return window. (This feature is available for GP (18.3.1290 and higher versions) and will not be rolled back to GP 2016.)

Here are the changes included with Group VAT:

A new checkbox for "Group VAT' has been added to the Company setup window.  This checkbox is not marked by default after an upgrade.  You should mark this checkbox for each company you want included in the Group VAT Return. 

When you log into a company marked for 'Group VAT' in Company setup, you will see a new button for 'Group VAT' has been added to the VAT Return window.  

You must generate, review and save the VAT Return in each company first.  Although the new 'Group VAT' button is available in all companies set up for Group VAT, you should only click on this button when you have calculated and saved the VAT Return in each company first and are ready to submit the Group VAT Return for all companies.  Be sure to log into the company* you wish to file from when you are ready to submit.  When you click on the GROUP VAT button, the GROUP VAT window will open and list all the companies set up for Group VAT.  These companies are marked by default, but you can mark/unmark companies to be included as desired if you do not wish to file for all companies at this time. (The functionality to submit a single company by itself is still available.)

When you click on the OK button above, you will get a message "Tax will be recalculated based on the Company's marked in the GroupVAT window.   Do you want to continue?"  When you click Yes, the system will then do it's magic and add together the totals for each company's VAT return and overwrite the totals in the company you are logged into with the sum totals for the Group VAT Return. 

•Pending - means that a VAT Return has been created and saved in that company and is ready to be submitted. 
•No Record - means that a VAT Return has not yet been created and saved in that company. 
•Submitted - means that the VAT Return for that company has already been submitted or attempted to be submitted.
•Completed - means that the VAT Return for that company has been submitted, and the response has been successfully received back to show it as completed.

*Therefore, we recommend that you create a new company to be used for the electronic submission process only to the HMRC.  Since the totals on the VAT Return (for the company you are logged in to when you press OK in the Group VAT window) are overwritten with the sum totals for the Group VAT return, it is recommended to have a separate company created just for filing.  This allows you to record the totals for the Group VAT Return in the new company, and still retain the individual totals of each VAT Return for each company included.   (I created a new company named 'VAT' in my example below but you can name it whatever you want.) 

HERE IS A DEMO OF THE NEW FUNCTIONALITY:  

Prerequisites:
• All Debtors and creditors must have a country code (CCODE populated in PM00200/RM00101)
• Fully paid sales documents must still be in open. (Do not move documents to history prior to generating a VAT return for that period). 
• You have registered with the HMRC to submit digital files.

1.  First, go into the Company Setup window for each company and mark the 'Group VAT' checkbox in the Company setup window (Administration | Setup | Company | Company.). This option is not marked by default.  Also ensure a valid Tax Registration number is populated.  Click OK.  Do this for each company to be included in the Group VAT Return.  (In my example, I marked this option in 4 companies.  3 of the companies will have a VAT Return and the last company is being used for submission purposes only.)

Note:  The error message"{"code": "MATCHING_RESOURCE_NOT_FOUND", "message": "A resource with the name in the request can not be found in the API"}" can result if the Tax Registration number is missing or invalid for any of the companies. 

2. Navigate to the VAT Return window (Administration | Routines | Company | VAT Return) in each company and prepare the VAT Return as normal.  (I calculated and saved the VAT Return in my first 3 companies that will be included in the VAT Return.) 

a.  Enter a VAT Report ID, and key in the year. 

b.  When you tab off the year, the HMRC_Log_in page will launch.  Click Continue. 

c.  Sign in with your User ID and Password, and click Sign in.  

d.  Click Grant Authority.

e.  Click to select the obligation period from the HMRC website and click OK.  

f. This will launch you back to the VAT Return window in Dynamics GP and populate the dates in the VAT Return window. (Notice that the GROUP VAT button and SUBMIT buttons are not yet available.)

3. Click Calculate.  Totals for the boxes below should populate. (Notice the GROUP VAT button is now available but do not click this yet until you are ready to file and logged into the company you wish to submit from.) 

a.  Click Save. Now the boxes below become editable.  

b.  Click PRINT at the top and print all the reports.  Review and compare totals between the VAT Return summary report and VAT Detailed reports to ensure there are no discrepancies.  (These are the only reports available, so be sure to print them now and review.) 

c.  Once you have verified the totals on the VAT Return, click Save it again if you made any edits.  (Do NOT mark the ''Final Return' Checkbox.)

4. Log into each company and repeat the steps above to calculate/save the VAT Return in each company. 

5.  When you are ready to file, log into the company you wish to file from and repeat steps 1-4 above to calculate and save a $0.00 return, and sign into the HMRC to select an obligation period. In the VAT Return window, click CALCULATE and the totals will all be $0.00 since there is no data in this VAT filing company.  Then click SAVE.  Next click the GROUP VAT button when you are ready to file for all companies.  

6. The Group VAT window will open and all the companies will be listed and marked by default.  Unmark the company you are filing in (that doesn't have any data), as well as any other companies you wish to exclude from the Group filing.  Click OK when you have reviewed the returns in all companies and are ready to file. 

NOTE:  We recommend to always file from the same company and this to be a company set up and used only for the Group VAT Submission process. This company will not have a return included. 

7. When you click OK in the Group VAT window, you will be prompted that the Taxes will be recalculated in this company with the totals for all the companies marked in the Group VAT window above. 

Click YES to continue and the window will close and the sum Totals will populate the VAT Return. 

8. Click SAVE.

9. Now click the FINAL RETURN checkbox. (Notice the SUBMIT button is now available).

10.  Now click SUBMIT. 

a.  You will be prompted with the normal message as before "When you submit the above information you are making a legal declaration that the information is true and complete.  A false declaration can result in prosecution."  This message applies for all companies included in the Group VAT filing.  Click OK if you agree.

b. The HMRC website will open, click CONTINUE and enter your user ID and password again.  Click SIGN IN and click GRANT AUTHORITY.  The submission will now send and a progress bar will briefly display.  The Digital VAT Response window should pop open and show the status. 

11. If you log into one of the other companies and select the VAT return that was included, you will see the FINAL RETURN checkbox is marked off, and if you click on the GROUP VAT button, you will see that all companies area listed and the status is submitted.  You can not make any edits. 

WHAT ARE THE NEW TABLES/FIELDS ADDED?

The new table added was the EDCVATG1 table in the Dynamics database.  This table includes a record for each company included in the Group VAT submission.  This allows you to see the totals for each company's VAT Return that were included in on the Group VAT Calculation.  Also a new GroupVAT field was added to the company setup window (SY01500), as well as on the individual company VAT Return (TX00300) to signify if the return should be pulled into the Group VAT window or not. 

MORE INFORMATION (Q&A)

Q1:  Does the new Group VAT functionality work for VAT Daybook reports?

A1:  The Group VAT functionality was designed for the VAT 100 Return.  It does not include the VAT Daybook report.

Q2:  What if the Group VAT window does not list all my companies?

A2: Sign into that company and verify that the 'Group VAT' checkbox is marked in Company setup, and a VAT Return has been saved for the period you wish to file for in that company. 

Q3: If I am not ready to submit for all companies yet, what should I do?  Do I have to use the Group VAT functionality?

A3: You can still submit for each company, as you did before.  You do not have to use the Group VAT functionality if you do not wish to at this time, even if you have it marked for the company.  However, it is your responsibility to group file for all companies at once if required by the HMRC.  

Q4:  Am I able to delete the VAT return?

A4:  If you click Delete on the VAT Return, you will delete the return in Dynamics GP for that company only.   The VAT Return will still exist in the other companies (if you group filed), and would have to be deleted in each company if desired.   Please note that this deletes the VAT Return in Dynamics GP only and does not void the submission sent to the HMRC.  You would need to contact the HMRC on your own for further instruction. 

Q5:  Is there a VAT Return report to print for the Group filing?

A5:  It is recommended to generate the Group VAT Return from a shell company and you can print the VAT Return summary report in that company.  However, there will not be any detail available.  You will have to print the Summary, detailed, tax detail and exception reports from each individual company to view the detail per company.  

RESOURCES:

• 'Making Tax Digital' Functionality in Dynamics GP. This blog contains information about the new MTD functionality and contains many troubleshooting tips, information and Q&A.

• Information about the VAT 100 Return. This blog has setup and installation information for VAT 100. 

• Set up Making Tax Digital for VAT.  This is the original document published on how to submit the Return to the HMRC.

I hope you will find this new functionality useful so that you can file all companies together.  Please bookmark this article as it may be continually updated with more information based on the feedback and questions we receive. 

Thank you, 
Cheryl Waswick
Sr. Technical Support Engineer
Microsoft Dynamics GP