Dynamics NAV and Dynamics 365 Business Central are now on HMRC's list of software products that support Making Tax Digital! This means that the HMRC has been presented with a demo of the solutions and has confirmed tests integrating NAV and BC to their APIs.
So let's take a look at the features which support compliance!
HMRC makes it possible for a system like Dynamics 365 Business Central to get access to your company's VAT obligations through the HMRC's systems in a secure way. We now retrieve them and store them inside the system and call them 'VAT Return Periods'. This lets you know about current VAT obligations, which period should be reported and when.
As we now have the start- and end dates of your VAT obligations we do not need to enter any dates when creating a new VAT return. Having the VAT obligation in the system allows for an easy one-click creation of a VAT return.
As we have the VAT obligation in the system we also know the due date of the VAT return. This means we can remind the user that there is an upcoming VAT return. No more forgetting to file the VAT return.
After the VAT return is created, which is done through standard functionality, Dynamics 365 Business Central can calculate the numbers to report in the VAT return. Existing users will recognize this simple process of choosing the period to calculate VAT. The system now suggests to calculate VAT based on the period retrieved from HMRC, leaving very few things for the user to worry about. However, if you want more control you can always change the suggested behavior of the calculation. Submitting the VAT return itself is a one click operation and a receipt is immediately shown.
HMRC is also making your VAT liabilities retrievable through APIs. We also retrieve these so you can view them inside Dynamics 365 Business central, to easily get an overview of your VAT payment status with the HMRC.
These features give organisations an easy way to comply with Making Tax Digital and have a complete overview of your VAT and the information the HMRC has stored about your obligations, returns, liabilities and payments.