Update: UK MTD-VAT Deadline postponed until 1st April 2021

As a result of the coronavirus (COVID-19) outbreak, HMRC (Her Majesty’s Revenue and Customs – the UK tax authorities) have announced a change to the deadline date for their Making Tax Digital (MTD) regulations for VAT returns to be submitted via a “digital link”. Originally, the MTD-VAT deadline was for VAT periods beginning on or after 1st April 2020. However, in order to give businesses more flexibility during these unprecedented times, all businesses now have until their first VAT return period starting on or after 1st April 2021 to put digital links in place.

HMRC have also announced that businesses with a VAT payment due between 20th March 2020 and 30th June 2020 have the option to defer the payment until a later date. HMRC will not charge interest or penalties on any deferred amount, and VAT reclaims and refunds will continue to be processed as normal. Please note, however, that VAT returns must still be submitted on time.

 

How our integrated SAP solution makes you compliant with the MTD-VAT rules

At PIKON, we’ve created an Integrated MTD VAT Connector for SAP. This SAP Add-On bridges the gap between your SAP ERP system (either SAP ECC or SAP S/4HANA) and the HMRC UK tax authority through a digital link to the MTD platform. The PIKON MTD solution is integrated in SAP and is very easy to implement, stable, easy to use and can be installed in a very short period of time. Today, more than 60 companies are already using the PIKON Integrated MTD-VAT Connector SAP Add-On to fulfil their MTD VAT requirements. More than 100 VAT returns have already been submitted using our MTD add-on.

Making Tax Digital - MTD Timeline - HMRC UK VAT Reporting;

How PIKON makes sure your SAP system is compliant with MTD-VAT on time

Although the deadline has been postponed, PIKON still stands ready to assist you (also remotely) with ensuring your SAP VAT structure is ready for MTD, as well as getting your system ready for the first submission. For more information about PIKON’s MTD solution, or if you would like to arrange a web meeting with our MTD team to discuss how PIKON can help you to fulfil your MTD obligations with SAP, please click the button below. We will get in contact with you as soon as possible.

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