Setting up parameters and tax codes for Making Tax Digital (MTD)
If you plan to use CloudSuite Business to calculate and report VAT in the UK, and your company will use MTD, use these steps to set up parameters and tax code information.
For more information about MTD, see "About the Making Tax Digital'” (MTD) requirement" in the Financials User Guide.
- Contact the HRMC to set up a VAT registration number, set up a client account, to agree on your method of payment to HMRC, and to set up a developer's account. This information is required in order to connect to the website from CloudSuite Business.
- On the Tax Parameters form, specify this information, which is used to connect to the HMRC website:
- Return Submission Site
- Specify the site, if any, that is used to consolidate VAT return information from other sites with the same VAT Registration
Number (Tax/Federal ID on the Tax Parameters form).
All sites with the same VAT Registration Number should be set up to replicate their VAT returns through the MTD replication category to a single site, specified here. The site specified in this field must be used to perform MTD processing on the VAT transactions from all of those sites.
If a site is specified in this field, and it is not the current site, then users cannot access the MTD forms from this site.
- URL
- Specify the base URL that is used to make API calls to the HMRC website. This is provided by HMRC.
- Client ID
- Specify your company's client ID, provided when you register with HMRC.
- Secret Key
- Specify your company's secret key, provided when you register with HMRC.
- Server Token
- Specify your unique Server Token, provided when you register with HMRC.
- HMRC Payment URL
- Specify the URL for the HMRC payment facility, where your company can pay VAT liabilities using your preferred payment method.
- Redirect URI Local
- Specify the page where users are redirected when they sign in to HMRC and are granted access for the CloudSuite Business smart client.
This is any available port in the server where HMRC can redirect the user upon signing in and granting access. For example, http://localhost:3033/
- Redirect URI Web
- Specify the page where users are redirected when they sign in to HMRC and are granted access for the CloudSuite Business web client.
This is the URL where HMRC can redirect the user upon signing in and granting access. This is usually the sign-in page for CloudSuite Business with additional information, for example https://servername.infor.com/WSWebClient/WSWebForm.aspx?Form=
- Period (Monthly or Quarterly)
- Specify whether you want to receive VAT obligations from the HMRC per month or per period, when you click Retrieve on the MTD Retrieve Obligations form.
- On the Tax Codes form, create tax codes that will be used to classify and define tax amounts to be included in VAT returns for MTD. Specify
this information:
Specify this information, as appropriate for each tax code:
- MTD Reverse Charge
- Select this field to indicate that the tax code is used for EU reverse charges.
Note: This field is used specifically with MTD. The Category field cannot be used in this case because it is tied to the Activate EU Reporting option.
- MTD EU Acquisition
- Select this field to indicate that the tax code is used for EU acquisition transactions.
Note: This field is used specifically with MTD. The Category field cannot be used in this case because it is tied to the Activate EU Reporting option.
- Tax Basis Boxes
- For transactions that include this tax code, indicate the boxes on the VAT Return that will include the Tax Basis amount.
Specify one or more of these whole numbers separated by commas: 6,7,8,9
For example, if the tax code is used for sales transactions, and the tax basis amount for these transactions should be declared under boxes 6 and 8, the value in this box should be 6,8. Incorrect formats can cause incorrect calculations of VAT returns.
- VAT Amount Boxes
- For transactions that include this tax code, indicate the boxes on the VAT Return that will include the VAT amount.
Specify one or more of these whole numbers separated by commas: 1,2,4
For example, if the tax code is used for sales transactions, and the VAT amount incurred for these transactions should be declared under box 1, the value in this box would be 1. Incorrect formats can cause incorrect calculations of VAT returns.
Boxes 3 and 5 are simply derived values from boxes 1, 2, and 4.
- Reverse Charge/EU Acquisitions Rate
- Specify the rate to use for tax calculations when this tax code is used for MTD Reverse Charge or MTD EU Acquisitions.
When MTD EU Acquisitions is selected, the percentage specified here is used to calculate the value to be added to boxes 2 and 4.
When MTD Reverse Charge is selected, the percentage specified here is used to calculate the value to be added to boxes 1 and 4.
See Using EU Reverse Charges and Acquisition Charges with MTD.