Making tax digital

Is there any further news on ERPNext being compatible with the new UK regualtions called making tax digital?

Good day,

Does anyone have an update on this?

If you’re still wondering, check the github ticket above. I’ve started working on a design :wink:

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Happy Easter!

Comments are invited on this ERPNext UK Making Tax Digital (MTD) integration complete with VAT return generator..

I posted lots of screenshots so you can get the idea.

I think it will work for us. Will it work for you? What do you need, want, love, like, dislike, hate?

Tech detail & possible snag: There’s still the issue of getting an HMRC Client ID. My working assumption is that, because this is open source, we can’t publish the client credentials. This could mean each end user will need to apply for their own. I’ve started the ball rolling for our company, lets see where we get to. :slight_smile:

I’ve completed a design that will allow integration with ERPNext as a regional module. Comments and support welcome!

Hi

How are things progressing with UK VAT/PAYE etc.?

I have been working on functionality to automatically calculate the salary in ERPNext but I have to admit that despite using various ERP systems previously, I am very new to this particular system so have a lot to learn.

Best Regards

Tom

Community support has been non-existent, so we will be developing the features as part of a private branch along with other features like Xero import that we’re working on currently. HMRC MTD integration soon to follow.

However, the universal report allowing a UK VAT Return is awaiting integration Here
Donations welcome through our website, support is much appreciated.

That’s a shame.

As a UK user I would be keen to follow these enhancements, and try to offer my input where I can. I have been working on key fields for things in areas such as payroll which calculates things such as income tax, national insurance etc.

My ultimate aim is for my companies to move over to ERPNext at the right time in the future. I have the live and test systems in place now so I have the ability to start the journey.

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@tjhorton I think you can use the UK VAT MTD module developed by @banksy. Available from Github. https://github.com/software-to-hardware/erpnext-vat-mtd

I wonder if @banksy or @casesolved-co-uk has modified the Making UK Tax Digital (MTD) module as so that it is possible to enter VAT amounts that are not fixed percentage. This is needed for import VAT accounting for UK.

Currently the GitHub - software-to-hardware/erpnext-vat-mtd: ERPNext VAT return generator and Making Tax Digital (MTD) Submission relies on Item Tax templates where the VAT percentage on the the Item Tax Class is defined i.e. typically 20%.

But if I import something to UK, then after importing the DHL/UPS/Fedex will send Import Invoice where the VAT has been paid on the customs value. This is typically done after paying the invoice to the suppliers. The courier import invoice has
Disbursement fee e.g… £11.50
Duty Amount e.g. £21.33
Value Added Tax e.g. £84.65

  1. How can the import invoice be posted to ERPNext?
  2. How can the VAT amount be posted as on e.g. this invoice VAT content is ~72%

Any suggestions?

With our module, you would post the invoice as a Purchase Invoice making sure each line entry is applied to the correct GL account, so Purchase VAT in your case.

Then our customisable Tax report picks up your GL Entries and applies them to the correct VAT return boxes.

More information as an animated gif is here

So how can we with your module enter for example import VAT amounts where there are no items, just charges (or expenses). Like on my example below:-
Disbursement fee e.g… £11.50
Duty Amount e.g. £21.33
Value Added Tax e.g. £84.65

Does your module also handle postponed VAT accounting?

Thank you.

A little known fact is you can post an invoice without Items, just arbitrary line entries. Just ignore the item code.

Another maybe better way would be to define a Journal Entry template and do it via a journal entry. Probably better because it’s not strictly a ‘Purchase’.

I’m not sure what postponed VAT accounting is, but the report only picks up entries in the time period you specify, so you could potentially post documents in the future.

There are ‘deferred’ features which I’ll be honest I’ve not looked at.

  1. I don’t seem to be able to post the invoice without Item. I wonder what is the correct way of doing this? I left item empty and I will get error message.

  1. Postponed VAT accounting can be used for imports where the VAT is paid and claimed at the same time. It was introduced bit over year ago. Some descriptions below.

What it needs from the VAT reporting perspective is the following.
Can your module do this?

  • Box 1 – VAT due on sales and other outputs: Include the VAT due in this period on imports accounted for through postponed VAT accounting.
  • Box 4 – VAT reclaimed on purchases and other inputs: Include the VAT reclaimed in this period on imports accounted for through postponed VAT accounting.
  • Box 7 – Total value of purchases and all other inputs excluding any VAT: Include the total value of all imports of goods included on your online monthly statement, excluding any VAT.

https://www.sage.com/en-gb/blog/postponed-vat-accounting/

You still need to fill out any required invoice item fields manually including the required account head.

Yes it supports postponed VAT and Reverse Charges. As long as you post GL Entries in the correct period (by invoice or journal), the report can be configured to pick them up.