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!
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.
System-Demo & Quotation
Request a web-meeting with a demo and we will explain you our approach to make your SAP ERP system MTD compliant with our solution “Integrated MTD-VAT Connector for SAP”.
Overview of the Integrated MTD-VAT Connector for SAP:
- On-premise installation, no interaction with cloud-based services
- Self-contained SAP Add-On – does not interfere with existing programs/ processes
- Developed in PIKON’s own Namespace /pikon/
- Web Dynpro or SAP GUI interface
- Simple transmitting of the data
- Uses existing VAT bookings to calculate the VAT returns
- Transparent reporting of all sending processes
- Utilises standard SAP communication processes to submit data to the HMRC MTD platform
- Supports various network topologies (e.g. communication via a Gateway server)
- Easy implementation through an SAP transport file
- PIKON is responsible for maintaining the SAP Add-On – MTD compliance in the long run
- No additional SAP licenses required
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How PIKON’s Integrated MTD-VAT Connector for SAP makes your SAP ERP system compliant with the new MTD for VAT regulations
The Integrated MTD-VAT Connector for SAP calculates and submits VAT returns directly from SAP ERP (either SAP ECC or SAP S/4HANA) to HMRC via a digital link to the MTD platform. Because of that, it ensures a seamless digital journey for your UK VAT fillings and runs over SAP ERP as an end-to-end solution. This solution is fully integrated in SAP without an external interface or use of external software and SAP ERP release independent. It contains user-friendly screens, owns customised tables and owns transaction codes and menus.
The SAP Integrated MTD VAT Connector meets HMRC’s legal requirements, is easy to use, quick to implement and easy to maintain.
With PIKON as your partner to make your SAP ERP system MTD-VAT-compliant, you can be assured of the following:
- Expertise in VAT accounting and development of interfaces to external tax systems.
- English-speaking consultants at our subsidiary in the UK and thus simple and efficient communication and coordination of all open questions with contacts directly on site.
- An end-to-end and fully integrated SAP ERP solution that is used not only by our customers but also by our own UK subsidiary.
- Cost-effectiveness: the implementation of our MTD Compliance SAP add-on provides a streamlined but convenient solution for your accounting team, allowing you to avoid SAP’s cloud-based solution while complying with the required reporting standards.
- HMRC approved software solution for MTD
- On-premise installation, no interaction with cloud-based services
- WebDynpro or SAP GUI interface
- Easy to send data
- Uses existing VAT entries to calculate the 9 boxes
- Transparent reporting of all sending processes
- SAP standard communication technologies for data transmission to HMRC
- Supports different network topologies (e.g. communication via gateway server)
System Requirements
- SAP ECC and S/4 HANA compatible
- All tax-relevant postings must be available in SAP FI
- Tax data can be delimited according to the 9 boxes (validated by pre-check)
- Sending system (ERP or gateway) at least on release 7.40 SPS 08
- Sending system (ERP or gateway) with direct access to the Internet
The basic price consists of the licence list price (one company code included) and a surcharge per additional company code that has to be reported.
An annual maintenance fee is charged for maintaining functionality in the event of updates on the part of both SAP and HMRC.
Please fill out the form to find out more about the pricing and/or get more information.
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: