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 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 (18.00.0704)
• Microsoft Dynamics GP 2016 (16.00.0741)
2. Is there a demo/documentation of the new MTD functionality?
Click below to review the documentation on this new electronic filing feature:
VAT in the UK Version of Microsoft Dynamics GP
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 when 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.**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 or VAT Daybook summary report are editable, so you can update the amounts at your own discretion before submitting the return.)
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
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