What is MTD?
Making Tax Digital (MTD) is an HMRC initiative designed to make sure the UK tax system is effective, efficient and easier for taxpayers.
Making Tax Digital for business (MTDfb) begins on 1 April 2019 with MTD for VAT. From that date, VAT-registered businesses above the threshold of £85k will have to keep digital records and submit VAT returns using compatible software.
Other components of Making Tax Digital, such as income tax and corporation tax, have been placed on hold until April 2020 at the earliest.
SNI MTD SAP Add-on
Our MTD SAP add-on solution runs over SAP ECC as an end-to-end solution.
The solution is fully integrated in SAP without an external interface or use of external software and SAP release and upgrade independent. It is implemented without core modification and ABAP is the programming language.
Installation is simply done via external transport file. It contains user-friendly screens, owns customised tables and owns transaction codes and menus.
MTD Filling for VAT
- Mandatory from April 2019
- Filling frequency remains the same
- Variety of data delivery formats are available.
- Records must be maintained digitally
What do Businesses do now?
- Keep records in a range of ways, including on paper.
- 99 % file their VAT returns online, mainly on a quarterly basis (either directly or through an accountant).
- Although many keep digital records, the vast majority calculate their VAT separately and submit their VAT returns using free HMRC product.
- Alternative arrangements for the digitally excluded.
What will Businesses do under MTD ?
- Keep digital records using software or app (option to use excel if it links to MTDfB enabled software).
- Generate and send quarterly updates - same 9 boxes of information as VAT return – direct from digital records.
- Software can interact with agent software to allow them to check/Send updates.
- Alternative arrangements for the digitally excluded (follows current definition).
Which Data Will be Filled?
1- VAT on sales and other outputs due in the period
2- VVAT on acquisitions from other EC Member States due in the period.
3- Total Vat due (The Sum of boxes 1 and 2).
4- VAT reclaimed on purchases and other inputs in the period ( Including acquisitions from the EC).
5- Net VAT to be paid to HMRC (Difference between boxes 3 and 4).
6- Total value of sales and all other outputs excluding any VAT (Include your box 8 figure).
7- Total value of Purchases and all other inputs excluding any VAT (Include your box 9 figure).
8- Total value of supplies of goods to other EC Member States and related costs, excluding VAT .
9- Total value of acquisitions of goods from other EC Member States and related costs excluding any VAT .
- Creating XML MTD Structures directly on SAP ECC
- Special MTD cockpit on SAP
- Ease the way to create the Structures Report
- Own Customizing Table
The solution is scalable. The SAP add-on is extendable to new report which will be mandatory regarding the MTD in the future. The new reports (as a plug-in) could be added quickly in an (cost) efficient and effective manner as the MTD add-on is designed in a way that it allows companies to extend the MTD requirements for other requirements.
“Mazda Motor Logistics Europe (MLE was founded in 1968 at Belgium. MLE employs over 350 employees. MLE delivers spare parts directly to over 2300 Dealers and Independent Distributors in more than 30 European countries. Mazda has chosen SNI SII & SAF-T solutions.”
“The major German multinational company that produces athletic shoes, footwear, and other sportswear has has chosen SNI e-Invoice and SNI e-Ledger solution.”
“Deloitte, the largest professional services network in the world by revenue and by the number of professionals, provides audit, tax, consulting, enterprise risk and financial advisory services with more than 200,000 professionals in over 150 countries. Deloitte has chosen SNI e-Invoice and SNI e-Ledger solution”
“What began 40 years ago with a collection of ties has grown into an entire world, redefining American style. Ralph Lauren has always stood for providing quality products, creating worlds and inviting people to take part in our dream. Ralph Lauren has chosen SNI E-archive ,SNI e-book keeping and SNI e-Invoice solutions.”
“Located in central Switzerland, Franke is a world leading provider of products and solutions for residential kitchens and bathrooms, professional foodservice, coffee preparation and semi-/public washrooms. Franke has chosen SNI SII & SAF-T solutions.”
Open-code applications, no dependency on vendor, fully working on SAP, developed entirely in ABAP language by SNI -a Certified Development Partner of SAP A.G. - . No need for any additional system or any extra web software (portal,etc.). and integrated with all modules.
Implementation of the solutions are simple almost as plug&play softwares while covering whole processes between legal authorities and firms. The maintenance and version upgrades are kept as simple as possible so that continuously changing legal requirement can be adopted very quickly.
Applications are designed by a team of SAP process and development experts. All processes are designed from an ERP and integration point of view considering users’ requirement and efficiency. Bottom line, efficiency of the end users is one of the main key points.
Continuous maintenance services are provided for each and every product with an online help desk and ticket management system (http://support.sniconsulting.net/). In a rapidly changing environment, upgrades by legal authorities are followed by SNI and applied to customers’ system on time based on a product version management system.