Good news, HMRC has officially listed Pegasus as a software supplier with VAT compatible products in development with Pegasus Opera 3.
MTD is a government initiative designed to transform the tax system and to make it easier for businesses to pay the correct tax. From 1 April 2019, VAT registered businesses (taxable turnover above £85,000) will be required to keep records digitally and submit VAT returns electronically to HMRC.
Specifically, the software which businesses use must be able to store and maintain records as specified in the regulations, prepare their VAT Returns using the information maintained in those digital records and communicate with HMRC digitally via their new Application Programming Interface (API) platform.
Note: Businesses will no longer be able to use HMRC’s online VAT submission portal
Opera 3 MTD has been designed to allow the customer to specify when the company is required to declare their VAT submissions under MTD. This is achieved by a ‘MTD for VAT’ indicator which turns on MTD VAT in Company Profiles. This will then allow access to a new MTD VAT Centre.
New fields for MTD in Company Profiles include:
Turning MTD on will allow access to a NEW VAT Centre within the System application. It is within here that much of the VAT related processing will occur; this includes the running of VAT reports, EC VAT declarations as well as committing the VAT transactions to the selected VAT period before processing any final VAT adjustments and submitting the MTDV compliant declaration to HMRC.
The VAT Centre will use HMRC APIs to give Opera 3 the ability to submit the VAT box information to HMRC and to provide the information on what VAT period HMRC are expecting to be filed next and when. It will also provide information on the success of previous submissions, the detail of which will be retained.
The Pegasus Scheduler will be used to create the submission and ultimately communicate with HMRC within the VAT Centre. To do this securely, the Pegasus Scheduler has received a technical uplift to use .NET Framework 4.7.2 as well as uplifting several DLLs. We have also taken the opportunity to uplift the application to use the WiX installer, the installer we use today with Pegasus Web Xchange and Opera 3 SE (Server).
Where MTD is not in use, i.e. either the Start Date is in the future or the company is outside of the inclusion scope for MTDV then the filing of the VAT100 will be the same as before i.e. updating using the VAT Online form and Pegasus Online Filing Manager.
To enable customers to enter their VAT return adjustments a new VAT transaction type ‘J’ has been added which will allow customers to define multiple VAT adjustment codes and specify which VAT boxes will be adjusted with full audit trace ability. These adjustments can be processed in the VAT Return Adjustment posting routine – see below.
I hope you found this update informative and if you have any further questions please don’t hesitate to get in touch, contact Alison on 01482 210999 or email [email protected]