Setting up VAT HMRC digital reporting

If you submit Value Added Tax (VAT) to Her Majesty’s Revenue and Customs (HMRC), you are required to use digital reporting. To activate the VAT digital tax functionality, you must complete this one-time setup process. Ensure you have completed any prerequisite setups before starting this process.

See VAT HMRC digital reporting.

We recommend that you log into your Distribution SX.e application before starting this process. You must switch between the application and the HMRC website to complete the setup.

  1. Initiate the application registration process through the HMRC Developer Hub. Access the HMRC Developer Hub (https://developer.service.hmrc.gov.uk/developer/login).
  2. Click Register. If you currently submit VAT, you should already have an HMRC online services account (Government Gateway account) setup for your business. This account holds your company data that is accessed by the HMRC's API services.
  3. Specify your name, organization, email address, and password for your HMRC online services account.
  4. Click Register.
  5. Click Sign In. Sign in with your email address and password.
  6. Optionally, in Add 2-step verification, click Continue to add this verification.
  7. Click Add an application. You are required to register Distribution SX.e as an application that accesses the HMRC API services.
  8. Specify this information:
    Application name
    Specify, for example, Distribution SX.e.
    Description
    Optionally, add a description.
    Choose and environment for your application
    Specify Sandbox or Production, depending on the status of your implementation.
  9. Click Add.
  10. Click Manage API subscriptions.
  11. In Hello World, click On. This setting enables you to have a ping call for verification.
  12. Scroll to VAT (MTD), and click On.
  13. In the panel, click Manage credentials.
    Note: When you registered the application, HMRC created a Client ID and Client Secret Key for your application. HMRC requires OAuth authentication, which requires both of these values when requesting authorization to access the HMRC API services. The URL is also noted on this page.
  14. Copy the Client ID and Client secret values.
  15. In Distribution SX.e, select System Administrator > Setup > Application Integration Endpoint.
  16. Click New to create a record for the HMRC authorization process. This record is used when requesting authorization to access the HMRC API.
  17. Specify this information for connecting to endpoints for external applications:
    Application ID
    Specify HMRCAuthorize, without spaces.
    Application Name
    Specify HMRC Authorization Request.
    URL
    Specify the URL for the HMRC API service, provided by HMRC in the HMRC Developer Hub-Manage credentials page. For example, https://api.service.hmrc.gov.uk/.
    Type
    Select OAUTH_2.
    From Logical ID
    Specify the Distribution SX.e application name you specified when you registered the application in HMRC Developer Hub.
    OAuth Consumer Key
    Specify the Client ID value from HMRC Developer Hub-Manage credentials page.
    OAuth Consumer Secret
    Specify the Client Secret value from HMRC Developer Hub-Manage credentials page.
  18. Click Test Connection to verify the connection.
  19. Click Save.
  20. In the HMRC Developer Hub panel, select Manage redirect URIs.
  21. Click Add a redirect URI.
    Note:  After Distribution SX.e has been registered in the HMRC Developer Hub, a redirect Uniform Resource Identifier (URI) must be loaded against the application. The redirect URI enables HMRC to know where to return to in Distribution SX.e. This URI can either be a publicly exposed location or a fully qualified domain name that can be accessed by HRMC. The endpoint must be secure; that is, https instead of http.

    The Progress Application Server (PAS) must be exposed to the extent that HMRC authorization returned through an HTTP GET call can be received and used. A web service has been created that runs on the PAS. This web service can consume the HMRC authorization response and can take the appropriate action to complete the authorization process. For CloudSuite Distribution, the PAS is already exposed. For on-premises Distribution SX.e, your system administrator must determine the appropriate setup based on the location of the PAS.

    HMRC requires a fully qualified domain name that can be accessed securely. You should discuss any potential changes with your Infor business consultant before proceeding. Use SA Business Rule Setup to create a business rule to control aspects of the HMRC processing within Distribution SX.e.

  22. Select System Administrator > Setup > Business Rule.
  23. Search for the RESTAccessURL rule.
  24. In the grid, drill down on the record.
    Note:  If this rule contains an accessible location that HMRC authorization can send authorization results, then no further action is needed. If the location in the rule is not accessible by HMRC, you must create a new business rule with an accessible endpoint. The new rule should be similar to the existing RESTAccessURL rule. The Attribute Name must be RESTAccessURLExposed. The rule value must be the fully qualified domain name of the exposed PAS. For example, https://hostname.companyname.com:port#.

    The value specified for this business rule is used to build the redirect URI that is specified for the application that is setup in the HMRC Developer Hub. The redirect URI is the endpoint of the new web service in Distribution SX.e, to which HMRC sends access security information. This endpoint must be able to, a) consume the response from HRMC, b) execute a call to convert the authorization information into an access token to be used in the API calls, and c) store that access token for the correct tenant.

  25. In Rule Value, copy the value.
  26. In HMRC Developer Hub-Add a redirect URI, in the Redirect URI field, specify the copied rule value.
  27. To complete the path, in the Redirect URI field, after the copied rule value, specify /web/api/shared/hmrcvatresponse.
  28. Click Continue. If the path is not valid, an error is displayed.
  29. Select System Administrator > Setup > Operator.
  30. Specify operator criteria, and then click Search.
  31. Select the records, and then click Edit.
  32. Click Function Security.
  33. Specify web in the Menu Set field.
  34. In the Name field, specify *saav.
  35. Click Set Function Security.
  36. Select the security level, and then click OK.
  37. Save the record. Log out and log back into Distribution SX.e to activate this setting.
  38. Select System Administrator > Setup > Company.
  39. In the Required tab, ensure the correct Country value and Currency section values are specified for your company.
  40. In the Taxes tab, in the Tax Settings section, to run the standard VAT taxing logic, the Tax Method must be set to Value Added Tax (VAT). The Tax Interface must be set to System Rates.
  41. Optionally, in the Tax Group Names section, specify your VAT exemptions.
  42. In the VAT Settings section, specify the VAT Registration #.
  43. Select the option, Use HMRC Digital Reporting.
  44. In the HMRC API URL field, specify the URL specified in SA Application Integration Endpoint Setup. You can confirm that the URL that is specified can access the HMRC API with the Test Connection button.
  45. Save the record.
  46. System Administrator > Administration > MTD VAT Reporting.
  47. Click Authorization to connect to the HMRC web browser.
  48. In the HMRC web page, read the instructions under "Authority to interact with HMRC on your behalf," and click Continue.
  49. Sign in with your HRMC online services account credentials.
  50. Click Grant Authority.
  51. If you receive a notification that the connection is not private, likely the security certificates are not yet in sync. Click Advanced, then Proceed. A message is displayed: ("Action": Close This Window and Begin Working in SAAV","Complete":true).
    Note:  A valid authorization exists. You are not required to go through the authorization process again until the current authorization expires or is revoked. An access token is created and stored in the HMRC system. The access token is used when you perform VAT digital reporting. The token is good for 4 hours. A refresh token is also created. The refresh token is used to obtain a new access token after the current one expires. After 18 months, if access has not been revoked, the access token can no longer be refreshed. A new authorization must be obtained.
  52. The SA MTD VAT Reporting function is now operable.