MAKING TAX DIGITAL IN SAP
How to implement the MTD HMRC rule in SAP ERP with the Integrated MTD-VAT Connector for SAP

Making Tax Digital (MTD) for VAT: why you need to update your SAP ERP system as from 1st April 2021

VAT periods beginning on or after 1st April 2021 must be submitted via MTD. 

With their Making Tax Digital (MTD) initiative, HMRC (His Majesty’s Revenue and Customs – UK tax authorities) have set their intentions to become one of the most advanced tax authorities in the world by enhancing the customer experience whilst also closing the tax gap.

The primary aim of Making Tax Digital is to make tax administration more effective, efficient, and easier for taxpayers through the implementation of a fully digitalised tax system by 2021, whilst also reducing HMRC’s overheads for managing tax affairs.

From April 1, 2022, ALL companies that generate taxable sales in Great Britain are obliged to submit sales tax returns via a “digital link” to the tax authority HMRC. The previous sales threshold of £85,000 will no longer apply!

Making Tax Digital (MTD) UK - Timeline

From a practical point of view, MTD for VAT requires businesses to keep digital records and accounts, which needs to be digitally linked – including all data transfer or exchange within and between software and applications. MTD mandates the use of functional compatible software, such as SAP ERP, to meet these requirements that must connect to the HMRC systems through APIs (Application Programming Interfaces). In order to comply with this mandatory requirement, PIKON have developed their “Integrated MTD-VAT Connector” for SAP.

SAP is cancelling SAP DRC in BTP Neo - action required for ECC users

The SAP Document and Reporting Compliance solution will be discontinued in BTP Neo Environment on 31 December 2025 and cannot be extended.
Companies using SAP ECC urgently need to find an alternative.

Our add-on ‘Integrated MTD-VAT Connector for SAP’ will not only continue to be usable for SAP ECC, but is also compatible with S/4HANA. This means that it is not just a short-term MTD interim solution, but also offers companies a future-proof option for migrating to S/4HANA.

Demovideo PIKON Integrated MTD – VAT Connector for SAP EN

DEMO VIDEO

Integrated MTD-VAT Connector for SAP

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An easy-to-use solution for the end user, the data transfer to the HMRC works smoothly. PIKON’s employees are experienced consultants who ensure a quick and smooth installation.
Based on our positive experience in the MTD project, this was certainly not the last solution that we will realise together with PIKON.

Thomas Heim
SAP Modul Manager FI/CO/HR, HSM GmbH + Co.KG

Overview of the Integrated MTD-VAT Connector for SAP:

Benefits of the Integrated MTD-VAT Connector for SAP

  • HMRC recognised software solution for MTD
  • Preliminary check of your system’s MTD compliance
  • No process adjustments necessary
  • SAP-integrated solution
  • No cloud connection necessary
  • Transmit tax data to HMRC easily, quickly and transparently
  • SAP ECC and HANA compatible
  • No additional SAP licenses required

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Contact

For more information about PIKON’s MTD solution, or if you would like to arrange a web meeting including a system-demo with our MTD team to discuss how PIKON can help you to fulfil your MTD obligations with SAP, please fill out the form:

Tommy Beckers
Tommy Beckers
Managing Partner PIKON Benelux NV
Daniel Schneider-Ortscheit
Daniel Schneider-Ortscheit
Customer Success Manager