Making Tax Digital for SAP – Submit VAT direct from SAP to HMRC [E-Book]

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Making Tax Digital for SAP Systems

Businesses want simple and seamless integration when sending VAT returns from SAP to HMRC. In this blog post, we will help you choose an SAP Making Tax Digital solution with confidence. Detailed explanations and examples have been included in our E-book. Here we will address the questions below:

What is MTD?
What are the new MTD requirements and deadlines?
Does your current solution comply with the new HMRC requirements?
How can you submit VAT returns directly from your SAP to HMRC in an efficient, compliant, and cost-effective way?
What is the Absoft solution and how exactly does it work?
What other solutions are there to consider?

Download our E-Book for a more elaborate view of your options for your SAP system and the regulation.

What is Making Tax Digital?

In short, the Making Tax Digital legislation issued by the UK government makes the move to digital VAT returns mandatory. Businesses have already started utilising MTD solutions. Uptake of Absoft’s Making Tax Digital solution has been significant, with lots of clients already using it for seamless VAT reporting.

It is important to keep in mind when choosing a solution that there are specific requirements for HMRC’s new MTD process. Choosing the wrong software or provider may result in higher than needed costs or financial obligations, errors in the data submitted, and cumbersome user experience. Keep reading to learn more on what to keep an eye on when choosing a solution or reviewing your current one.

When is the new MTD deadline?

Making Tax Digital applies to all VAT-registered businesses. For businesses with taxable turnover over £85,000 per year, the deadline is April 2021.

We recommend you start preparing for the switch now. That way you can start reaping the rewards of effortless, simple VAT returns today. Download our E-Book to get the information you need to complete your MTD transformation.

What are the new requirements?

Is your current solution compliant with them?

Your business must have functional compatible software and digital record keeping must comply with standards set by HMRC.

The regulation states that a business which is in scope for MTD must use functional compatible software (like SAP ERP) to meet the specific requirements. Further specifications of the regulations around digital record keeping outlines the information a business needs to keep and preserve digitally. This would include: Business names, VAT account information for example.

Does your current method or solution for submitting VAT returns comply with all requirements?

We explain in our E-book in detail what the software must include, what information need to be stored where and how to make sure you choose the right solution:

How can you submit VAT returns directly from your SAP to HMRC in an efficient, compliant, and cost-effective way?

Making Tax Digital legislation has encouraged businesses to assess their record-keeping and VAT return processes. Whether your data is located in SAP itself or another system, adequate reporting is key ensuring MTD compliance. This must be set up to provide the necessary VAT information to HMRC.

If you have doubts your finance and VAT processes need review we recommend you address this imminently. This ensures that best practice is in play in your organisation before implementing an Making Tax Digital for SAP solution.

In this blog post we will touch briefly on two options that guarantee all of the above. For more details about the solutions you can choose from and the pros and cons – Download our E-book below.

What is Absoft’s solution and how exactly does it work?

When we first started talking about MTD with our customers a couple of years ago, several key requirements were shaped as an absolute must for our solution. Some of those include:

Keeping the cost low
No middle-ware involved
No cloud interface
Seamless integration
HMRC approved

Our clients did not want to have a large project with unnecessarily big software or middleware involved. We took this feedback and HMRC’s requirements and created a solution that made our client’s VAT returns a breeze in 2019 and 2020. We also maintain and update the solution so our clients don’t need to act if HMRC impose changes or adds new requirements. Find out what other benefits there are of implementing the Absoft’s MTD solution and a comparison with another tool by downloading our E-book here.

Which other MTD solutions I could consider?

Using SAP ACR

Apart from our solution, there is also the option to use SAP ACR to streamline the Making Tax Digital for SAP process. The SAP ACR Service enables you to generate and submit statutory reports that contain indirect taxes (such as value-added tax) to HMRC. It has pre-configured templates for MTD already packaged as part of the solution, giving peace of mind that the information you provide is relevant and correct.

We have put together all the information and pros and cons of the solution in our E-book including answers to the following questions: