Complying with Legal HMRC Requirements
Since April 2019, UK entities have been required to submit the nine boxes of their VAT return to HMRC through an automated process. This mandate also applies to overseas traders and VAT groups as of October 1, 2019. Manual entry of consolidated VAT figures is not permitted; submissions must be made via HMRC’s API platform, which also provides an automated response from HMRC.
HMRC recognized KGT bridging software
KGT’s SAP add-on for MTD UK is fully installed within your SAP environment and includes a user-friendly cockpit for extraction, submission, receiving responses from HMRC and monitoring of VAT returns. The add-on connects to KGT’s HMRC-recognized bridging software, which automatically submits VAT return data without manual intervention.
All data remains within SAP and is transmitted securely to the UK tax authorities using encryption. The bridging software functions solely as a passthrough and does not store any data externally. Only authorized employees have access to the SAP production environment, ensuring complete control over your VAT information.
Our solution operates via the HMRC-recognized portal.
Automated VAT Return Processing
The SAP add-on extracts all relevant VAT data from standard SAP and calculates the nine boxes of the VAT return. It converts VAT accounting data into the final numbers required for the boxes of the VAT return, formatted in the legally mandated JSON format, automatically generating the file for submission to HMRC and enabling retrieval of liability and payment reports.
The cockpit enhances effective and efficient VAT management by supporting all HMRC APIs and allowing users to manually adjust or input relevant VAT data, such as capital goods scheme adjustments. All changes and modifications are logged, providing a full audit trail. Standard VAT controls are embedded to ensure accuracy, and all digital VAT accounting information can be archived in SAP or on a local server for tax audit purposes. The underlying digital VAT accounting information is readily available in the cockpit and can be sent as a JSON file upon request from the tax authorities.
Key Functionalities
The add-on offers a range of features to simplify compliance and reporting:
- Reconciliation of VAT results with the general ledger balance on VAT accounts.
- Optional reconciliation with additional reports, including VIES and Intrastat.
- Integration with existing client calculation files if required.
- Custom enhancements tailored to specific client requirements.
Benefits
KGT’s SAP MTD UK add-on automates VAT determination, ensures full compliance with HMRC requirements, reduces manual effort, and provides a transparent, auditable process entirely within SAP.
It is an SAP-integrated solution that automates the preparation and submission of UK VAT returns (the nine boxes) directly to HMRC, in compliance with the Making Tax Digital (MTD) regulations.
Since April 2019, UK entities must submit VAT returns automatically via HMRC’s API. Manual entry of consolidated VAT figures is not permitted.
The add-on connects to KGT’s HMRC-recognized bridging software, which automatically transmits VAT return data from SAP to HMRC. All data stays within SAP and is encrypted during transmission.
Only your employees who have access to the SAP production environment can use the add-on. No third parties have access to your VAT data.
The add-on extracts and transforms VAT accounting data to calculate the nine boxes of the VAT return. It automatically generates the legally mandated JSON file for submission. It also provides a cockpit for extraction, submission, response retrieval, and VAT management and supports manual adjustments with an audit trail and standard VAT controls.
Yes. The add-on can reconcile VAT results with general ledger balances, VIES, Intrastat reports, and existing client calculation files if needed.
Yes. The solution can be tailored to meet client-specific requirements, including custom enhancements and integration with existing calculation processes.
All digital VAT accounting information is available in the SAP cockpit and can be archived locally, enabling quick access for audits or requests from HMRC.