Making Tax Digital with SAP Business One
In July 2017 Making Tax Digital (MTD) was announced by HM Revenue and Customs (HMRC) which is due to come into effect from the 1st April 2019.
This blog takes a closer look at Making Tax Digital with SAP Business One and what this means for existing users.
What is Making Tax Digital?
Making Tax Digital (MTD) is part of HMRC’s plans to become one of the most digitally advanced tax administrations in the world, modernising the tax system to make it more effective, efficient and easier for end users to manage.
Businesses operating in the UK whose taxable turnover exceeds the VAT registration threshold of £85,000 will need to keep their records digitally using MTD compatible software from the 1st April 2019.
MTD aims to fulfil three key requirements:
- Digital record keeping – ensuring all transactions are stored in an electronic form
- Digital links – supporting digital links between final numbers and source data
- Digital submissions – all submissions are to be made using HMRC’s approved software
MTD and SAP Business One
SAPs ‘SAP Business One Solution Management’ team is engaged with HMRC and has been part of their testing program for some time now in order to provide a solution that addresses the requirements for Making Tax Digital.
MTD related changes, require companies to manage the submission of VAT returns via software, in a digital form. The currently available portal, where manual uploads of information for VAT return declaration processing is possible, will no longer be supported by HMRC following MTD.
Through constant communication with HMRC representatives, developments to the SAP Business One software are underway along with additions to the future roadmap to ensure compliance.
Frontline understand that within the next few patch level updates of SAP Business One version 9.3, users can expect a solution with application changes relevant for MTD compliance and readiness.