Microsoft has recently previewed some of the potential functional updates for Dynamics 365 Business Central and Dynamics NAV which will comply with the Making Tax Digital initiative.
The Making Tax Digital initiative will mean businesses will face new requirements in United Kingdom from April 2019.
The list of software products that support Making Tax Digital includes Dynamics 365 Business Central and Dynamics NAV with the recent demonstrated solutions being confirmed as being able to be integrated with the HMRC API’s.
Customers using Dynamics NAV beyond version 2015 and Dynamics 365 Business Central clients will have a VAT management compliant solution ready to use. You can prepare yourself for the new Making Tax Digital initiative by looking over a MTD checklist or considering the MTD options for Dynamics NAV or MTD options for Dynamics GP. The below features will be available for the update scheduled for release soon.
VAT Returns
If you are currently using Dynamics NAV 2018 or Dynamics 365 Business Central you already have the capability of submitting your VAT return electronically to HMRC via the GovTalk service as well as both Dynamics NAV 2018 and Dynamics 365 Business Central providing 360- degree solution for VAT management. You can also get access to information about VAT obligations, liabilities and payments via HMRC’s new modern system.
The Business Central Making Tax Digital Features
VAT Returns
You can now store and retrieve your company’s VAT obligations through the HMRC system allowing you to know which period they should be reported and by when. You will be able to run a “VAT Return Periods” for these obligations with a start and end date for your VAT returns.
As users will be able to create VAT Returns with the start and end dates there will be no need to enter any dates when creating a new VAT return, the VAT obligation in the system will allow for a one-click creation of a VAT return for customer ease and extra fluidity.
VAT Reminders
With the ability to input VAT obligations into the system the due date of the VAT return will already be viewable. This means users can be reminded of any upcoming VAT returns allowing them to properly schedule and not miss anything.
VAT Return Submissions
When users have the VAT return created through the standard functionality, Dynamics 365 Business Central can calculate the numbers to report in the VAT return. The system will be able to suggest users to calculate VAT based on the period retrieved from HMRC allowing you and your team to focus on other things. For added control users can change the suggested behaviour of the calculation with the ease of submitting the VAT return with a one click which also will display the receipt for you.
Visibility of VAT liabilities and payment
Your VAT liabilities will also now be retrievable through APIs with HMRC. These VAT liabilities will also be viewable and retrievable via Dynamics 365 Business Central so you can see all your VAT affairs centrally. This will allow for a full overview of your VAT status with HMRC which will include the information stored on returns, obligations, payments and liabilities.
Release Date
Following the HMRC pilot scheme earlier this year these Microsoft features are currently targeted for a release date of December this year for Dynamics 365 Business Central, Dynamics GP and Dynamics NAV.
*Please Note that all functionality mentioned may vary from versions to version because of technical differences in the versions spanning from Dynamics 365 Business Central down to Dynamics NAV 2015. These features may be subject to change upon final release.
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