The MTD4VAT pilot is now up and running - its still in the private beta phase but the public beta phase starts in July. The pilot has thrown up a few issues with Government Gateway registration details, so an immediate action point is to ensure that you have Administrator login credentials (as opposed to assistant rights) for all of your VAT registrations. You will need to contact the Gateway IT support if you have any concerns about this. We are also working with HMRC to understand the most appropriate way for corporates with multiple VAT registrations to register for MTD4VAT.
The good news is that HMRC has published a draft VAT notice providing guidance about "functional compatible software". It outlines 8 scenarios to illustrate what is an acceptable "digital data flow" for "functional compatible software". In summary the following high level scenarios will be MTD compliant providing each element is "digitally linked" to the next:
As you can see HMRC has listened to the consultation feedback and accepted that Excel is an important part of the MTD4VAT solution - providing there are "digital links" between Excel files, and bridging software to the MTD filing API. While we are still waiting for a clear definition of "digital links" we are heartened that HMRC have listened to the feedback from the consultation exercise.
Our approach to MTD is to build on the success of our VAT Controller software which has been used by large corporates to manage and control VAT compliance since 2010. VAT Controller has always been supported by Excel VATPacks and we believe that by expanding the use of VATPacks to accommodate the requirements of MTD we can deliver an MTD compliant solution which allows users to retain the flexibility required for the VAT return preparation and review process.
We have a range of VATPacks which will enable those organisations who are happy with their current process to become MTD compliant with minimal change, while also allowing tax teams the opportunity for a complete refresh of their processes. We will work with you to make your Excel VAT packs MTD compliant and then provide the control, process workflow and filing mechanisms using our VAT Controller hosted software to give you end to end MTD compliance. If you would like to know more please get in touch.