Follow these steps if you’re a business and you need to follow the rules for Making Tax Digital (MTD) for VAT.
What is Making Tax Digital (MTD) for VAT?
From April 2019, most VAT registered businesses with a taxable turnover above £85,000 must follow the rules for Making Tax Digital for VAT. This means you’ll need to:
- keep digital VAT records
- sign up for Making Tax Digital for VAT
- use software compatible with Making Tax Digital to submit VAT Returns
Check If You Have To Join Making Tax Digital for VAT.
Sign up for Making Tax Digital for VAT.
Sign up your business for Making Tax Digital for VAT to submit VAT Returns digitally.
You’ll receive an email within 72 hours to confirm that you can submit returns using software that’s compatible with Making Tax Digital for VAT.
After you’ve signed up, you cannot use VAT online services to send VAT Returns.
Authorise Zumzum Financials To Submit MTD Compliant VAT Returns.
Remote site settings
Salesforce allows you to access external website resources from Zumzum Financials for your organization. To avoid accessing malicious websites from Zumzum Financials, the HMRC Making Tax Digital for VAT website first needs to be registered and activated with remote site settings. Once the site is activated, it can be used within Zumzum Financials to communicate with HMRC.
To activate the HMRC MTDfVAT remote site setting:
- From Setup, enter Remote Site Settings in the Quick Find box, then select Remote Site Settings.
- Click edit next to the HMRC MTDfVAT remote site.
- Set the Active checkbox to true.
- Click Save.
Before you can send VAT returns, you’ll need to authorise Zumzum Financials to submit VAT returns on your behalf.
Authorise MTD for VAT
- Navigate to the Setup (Zumzum) tab.
- Select the Company setup icon.
- Find the related list for Companies and select the organisation you wish to authorise.
- Find the component names MTD For VAT and click the Authorise button.
- Follow the on screen instructions to login to your HMRC account with your Government Gateway username and password.
- Review the HMRC conditions and approve access to your account.
- Sign into your Salesforce account to complete the authorisation process
- Once signed in to HMRC , you may close the browser.
You will see a success message to confirm your company is now connected to HMRC. In the related list for VAT Gateway you will see a new record created.
The first time you authorise Zumzum Financials to connect to your HMRC account, your VAT Obligations will be downloaded and stored in Zumzum Financials.
You are now able to follow the procedure for creating your VAT returns in Zumzum Financials and submit via the MTD for VAT connection.