Making Tax Digital VAT Groups and Microsoft Dynamics

Making Tax Digital (MTD) took effect on 1 April 2019, when HMRC set out its intention to become one of the most advanced tax authorities by enhancing customer experience and closing the tax gap.

VAT group submissions come into force on 1 October 2019, when it is mandatory for groups to use compliant software to submit VAT. According to HMRC, there are around 20,000 VAT groups in the UK, across a range of different business types and sizes. Groups refer to VAT groups or different parts of the same organisation where each member of the VAT group or a separate area of an organisation has a single VAT registration.

Microsoft does not offer an upgrade to Dynamics to submit group VAT

Microsoft provided an upgrade for some versions of Dynamics for single VAT submissions, so you may assume, if you use Dynamics, you will get another update for VAT groups compliance. However, Microsoft will not provide an update or a solution to submit group VAT. This means that VAT groups will need to source a bridging solution to comply with MTD VAT groups submissions.

How does a bridging solution work?

A bridging solution creates digital linkage, so VAT returns are submitted from the digital records. This linkage works using APIs directly to HMRC’s new MTD portal.

MTD for VAT Groups Module for Dynamics

Since Microsoft does not offer an upgrade to Dynamics products to comply with group VAT submissions, we have developed an MTD for VAT Groups Module for Dynamics, a bridging solution that connects your Dynamics finance system to the HMRC API and provides an intuitive and compliant mechanism for submitting group VAT.

Features of our module:

  • Consolidation of VAT figures
  • Direct report submission to HMRC from Dynamics
  • Visibility into VAT obligations

To discover more about Making Tax Digital for VAT groups and Microsoft Dynamics, download our guide or visit our Making Tax Digital Hub.