Making Tax Digital – Dynamics 365 FnO/AX 2012 R3
Will typing out blog on a train: As we all know HMRC are bringing the tax that we all love… that is VAT into the modern age – well at least a step in the right direction and will make it mandatory for companies to submit their obligatory VAT returns automatically through to the HMRC system i.e. “MAKING TAX DIGITAL”.
Random concerned user: But wait!!!!! I use Microsoft Dynamics 365 for Finance & Operations (…and my little bro uses AX2012 R3) how am I meant to comply with this, am I meant to comply with this – who is meant to comply with this arghhhhhhhhhhhhh!??!?!
Will: Firstly, calm down. Secondly compliance concerns itself with those whose VAT return amounts to over 85,000 GBP (£), if you don’t have to return over that threshold then it’s entirely up to you if you comply…However, this threshold and compliance limit may change in 2020 – so be ready! VAT returns from the 1st April 2019 will have to be submitted, for those who fall into the compliance bracket, via the MTD process.
So HMRC have blessed all of us with a selection of APIs which allows us to:
- Retrieve VAT obligations (mandatory)
- Submit VAT return for a period (mandatory)
- View a VAT return for a period (optional)
- Retrieve VAT liabilities (optional)
- Retrieve VAT payments (optional)
The beautiful people at Microsoft will ensure Dynamics 365 for Finance & Operations (and AX 2012 R3) can achieve the first 2!!!
With regards to point 2 FnO will collect info for the VAT return, as per usual config, but will then allow the relevant user to send the report onward to HMRC – then you’ll be able to see the HMRC responce to your submission in the system….winning!!!!
To view the Whitepaper from Microsoft click here => https://mbs.microsoft.com/customersource/northamerica/AX/learning/documentation/white-papers/MakingTaxDigitalUK365FinanceOperationsAX2012R3