1. Country-Specific Features
  2. United Kingdom Help Topics
  3. United Kingdom Tax Topics For Accounts Without SuiteTax
  4. United Kingdom VAT100 Tax Report
  5. Making Tax Digital for VAT
  6. Making Tax Digital for VAT Overview and Setup

Making Tax Digital for VAT Overview and Setup

Note:

This topic is for NetSuite accounts that use the Tax Reports (International) page to generate the United Kingdom VAT100 Return. If you are using the Country Tax Report page, see Making Tax Digital.

Overview

The MTD for VAT feature enables you to digitally record, generate, submit, and retrieve the United Kingdom VAT100 Return from HMRC through the VAT (MTD) API.

Using this feature, you can do the following:

  • Keep digital records of designatory data, supplies made (customer transactions), supplies received (supplier transactions), recording of reverse charge transactions, and summary data

  • Generate and submit the United Kingdom VAT100 Return online to HMRC

  • Submit a VAT100 Return CSV file (.csv) of your consolidated VAT records in NetSuite, other systems, and VAT adjustments

  • Retrieve previously submitted VAT100 Returns from HMRC

  • View the MTD VAT Return submission history

  • Export the VAT100 Return in an Excel file (.xls)

Important:

The MTD for VAT feature does not support NetSuite Test environments such as sandbox accounts as the HMRC website is not equipped with a testing environment.

Note:

The Making Tax Digital service is currently used for filing VAT returns only. In NetSuite, the MTD for VAT feature is compatible with Multi–Book Accounting feature. For more information, see Multi-Book Accounting for International Tax Reports.

MTD Digital Recordkeeping

HMRC requires all VAT-registered businesses to keep their VAT records digitally for Making Tax Digital.

In compliance with HMRC, NetSuite supports digital recordkeeping of the following data:

Designatory data

  • Business Name

  • Principal Business Address

  • VAT Registration Number

  • VAT Accounting Schemes used

Supplies made

  • Time of supply (tax point)

  • Value of the supply (net value excluding VAT)

  • Rate of VAT charged

Supplies received

  • Time of supply (tax point)

  • Value of the supply

  • Amount of input tax to be claimed

Recording of reverse charge transactions

Reverse charge rule shifts the liability to account for VAT from the supplier to the customer. For more information, see Understanding EU VAT Reverse Charges.

Summary data

  • Total output tax owed on sales

  • Total tax owed on acquisitions from other EU member states

  • Total tax owed you are required to pay on behalf of your supplier under a reverse charge procedure

  • Total input tax you are entitled to claim on business purchases

  • Total input tax allowable on acquisitions from other EU member states

  • Total tax that needs to be paid or total tax you are entitled to reclaim following a correction or error adjustment

  • Total tax that needs to be paid or total tax you are entitled to reclaim following any other adjustment allowed or required by VAT rules

  • Total of each type of adjustment

MTD for VAT Setup

Before you can digitally submit a United Kingdom VAT100 Return to MTD, you must accomplish the following one-time setup.

To set up MTD for VAT feature:

  1. Go to Reports > VAT/GST > Tax Reports (International).

  2. If you are using a OneWorld account, select the United Kingdom VAT-registered subsidiary.

  3. On the Tax Reports (International) page, click Setup and select Tax Filing.

  4. On the Tax Filing Setup window, check the Making Tax Digital box to start using the MTD for VAT feature.

  5. Fill out the following required fields:

    • VAT Registration No. – This is your organization’s United Kingdom VAT registration number.

    • Output Folder for VAT100 – This is the File Cabinet folder where retrieved files of your VAT100 submissions will be stored.

  6. On the VAT Reporting Period dropdown list, select your organization’s VAT Reporting Period based on its registration with HMRC:

    • By Quarter -You submit a VAT Return every three months.

    • By Month -You submit a VAT Return every month.

    • Custom – Your reporting period is neither monthly nor quarterly but does not exceed a 12-month period.

  7. On the VAT Accounting Scheme multi-select field, select your organization’s registered VAT accounting scheme with HMRC:

    • VAT Standard Accounting Scheme

    • VAT Cash Accounting Scheme

    • VAT Annual Accounting Scheme

    • VAT Flat Rate Accounting Scheme

    • VAT Margin Scheme

    • VAT Retail Scheme

  8. Click Save.

Important:

The HMRC User ID and Password in the Tax Filing Setup window is not used in MTD VAT Return submission. You will be redirected to the HMRC website to log in using your User ID and Password in every session. When you log out of NetSuite, the connection with HMRC also ends.

If you want to submit a CSV file of your consolidated VAT100 Returns from NetSuite, see Submitting an MTD VAT Return in a CSV File.

MTD for VAT Roles and Permissions

Important:

Only users who are employees can submit MTD VAT returns to HMRC. Users who are set up as vendor, partner, or customer cannot perform MTD VAT return online submissions. For more information, see NetSuite Users Overview.

MTD for VAT requires the International Tax Reports SuiteApp. These standard roles provided by the SuiteApp have been given access to MTD by default:

  • Tax Reporting Accountant

  • Tax Reporting Accountant Reviewer

  • Tax Reporting CFO

  • Tax Reporting Bookkeeper

To customize a standard role, the following permissions and access must be added to enable the MTD for VAT feature.

Add these permissions on the Custom Record subtab:

Subtab

Permission

Minimum Permission Level

Custom Record

Online Filing

Edit

Custom Record

Online Filing Authorization

View

Custom Record

Online Filing Configuration

Edit

Custom Record

Online Filing Template

Edit

Lists

Perform Search

Full

To know the steps on setting permissions to a custom role, see Setting Permissions.

You must also add the following scripts:

Purpose

Script Deployment Name (Suitelet)

Deployment ID

To digitally submit and retrieve the United Kingdom VAT100 through MTD

Online Filing Runner Suitelet

customdeploy_online_filing_runner_su

Online Filing Suitelet

customdeploy_online_filing_su

Authorization Suitelet

customdeploy_authorization_su

To submit the United Kingdom VAT100 in a CSV file

Online Filing Import Suitelet

customdeploy_online_filing_import_su

To know the steps on adding script deployments for international VAT reporting, see Granting Access to VAT/GST Reporting.

Related Topics:

General Notices