Have you applied the most recent patch (2019 February Hotfix) for Microsoft Dynamics GP so you are ready for the April 1st digital filing requirement for filing UK VAT taxes? The first phase of the new 'making tax digital' (MTD) requirements by Her Majesty's Revenue and Customs (HMRC) will go into effect 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:
1. Is the new MTD functionality available for all Microsoft Dynamics GP versions?
This new functionality is available for both the VAT 100 Return and Vat Daybook summary report, by installing the 2019 February Hotfix (or later) for Microsoft Dynamics GP 2016 and Microsoft Dynamics GP 2018. This functionality is not available for prior versions. Below are the builds that include this new functionality:
• Microsoft Dynamics GP 2018 (GP build: 18.00.0704, VAT build: 18.00.0704) or later
• Microsoft Dynamics GP 2016 (GP build: 16.00.0741, VAT build: 16.00.0741) or later
2. Is there a demo/documentation of the new MTD functionality?
Documentation on the new electronic filing feature.
3. How do I enable the new MTD functionality on my existing environment?
After installing the February update, 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'.
4. What should I be aware of before generating a VAT Return?
Before generating a VAT Return, 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 on their setup. (We recommend to make 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 them pull on to the VAT Return.
• 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?
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 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 and investigate 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 no longer editable.)
7. Can I generate the VAT Return without launching to the HMRC site?
Yes. Simply unmark the checkbox notes in Step 3 above, and continue as before, where you enter the date range and generate the Return, without launching the HMRC site.
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 a list of all MTD error codes review the HMRC site.
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.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.
11. When I tab off the YEAR field I get the message "No Obligations found for the year 2019" is given. What does this mean?
This message is generated from the HMRC site and means that there are currently no VAT periods or obligations found on the HMRC site for which your company must report VAT. 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.If the obligation deadline has passed, or you submitted by other means, example May 2019, you will receive this error, until there are new obligations for the next reporting period.
12. The HMRC does not accept negative numbers. I have negative numbers on my VAT summary report. Will my return be rejected?
Microsoft Dynamics GP will display any negative numbers to the user as negative, but will pass the number as a positive number on the submission.
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 WaswickSenior Technical Support EngineerMicrosoft Dynamics GP Support
Thanks for the great post!
I have a question regarding multi currency, one of our GP companies has been setup with functional currency as US dollars, will this new functionality support any currency other than GBP?
Hi Cheryl, we are been asked by client why Dynamics GP is not listed on HMRC website as approved software or in development.