Viewing and amending VAT obligation calculations (MTD)

Use the MTD Obligations and Returns form to calculate and verify the amounts to be included in each of boxes on the VAT Return form for the specified time range.

  1. Open the MTD Obligations and Returns form.
    If a different site is used to consolidate MTD information from the current site, this form is disabled at the current site. See Setting up MTD when multiple sites have the same VAT ID (VRN).
  2. Specify the date range for the obligation.
  3. This information about the obligation is displayed in the header:
    Due Date
    This field displays the deadline for fulfillment of the obligation.
    Received Date
    This field displays the date when final payment of the obligation has been posted and no balance remains.
    Status
    This field displays the status of the obligation: Fulfilled (paid in full) or Open.
  4. In the Returns tab, specify the Tax System and Tax Jurisdiction on which the calculations will be based.
  5. Click Calculate to calculate and display this information, to be used in the VAT Return:
    Field Calculation
    Sales VAT due Include sales and sales tax amounts from the VAT Report and Sales VAT Register Report
    Acquisitions VAT due Include tax amounts where the associated tax code has MTD EU Acquisition selected and VAT Amount Boxes set to 2.
    Total VAT due Sum of Sales VAT due and Acquisition VAT due.
    Reclaimed VAT due Include purchase and purchase tax amounts from the VAT Report and Purchase VAT Register Report.
    Net VAT due Total VAT due minus Reclaimed VAT due
    Total sales value excluding VAT Sales VAT due minus all sales tax
    Total purchases values excluding VAT Reclaimed VAT due minus all purchase tax
    Total goods supplied value excluding VAT Include tax amounts where the associated tax code has MTD EU Acquisition selected and Tax Basis Boxes set to 8.
    Total acquisitions excluding VAT Include tax amounts where the associated tax code has MTD EU Acquisition selected and Tax Basis Boxes set to 9.
    Note: These calculations exclude any General Ledger journals that include tax code values.
  6. Verify the calculated amounts. To compare them to the matching transactions:
    1. Click View Transactions.
      The MTD Transactions form is displayed.
    2. You can filter the transactions based on these fields. Click Refresh to update the list of transactions.
      VAT Return Box
      Select a box number (1- 9) to view all the transactions that were included in the calculation of the amount in that box.
      Tax System
      Select a tax system to further filter the transactions. This value defaults to Tax System 1.
      Tax Jurisdiction
      Optionally, select a jurisdiction to further filter the transactions.
      Site
      Select a site here, to view only the transactions generated by that site. This can be helpful if you consolidate transactions from multiple sites.
      Note: You can export the transaction information in the grid to Excel, if you want to save the transaction data for later viewing.
    3. When you finish comparing the transaction amounts to the calculated amounts, close the form and return to the MTD Obligations and Returns form.
  7. If you need to amend any of the calculated amounts:
    1. Click Enter Adjustments.
      The MTD Adjustments form is displayed.
      Note: MTD adjustment records are permanent records which form part of the required digital record keeping. If an adjustment also requires an update to the General Ledger balances, you must additionally process a separate GL journal, which will not include any tax code.
    2. Use the grid in this form to enter adjustments to the calculated values for the VAT Return boxes.
      Specify this information:
      Obligation Start / Obligation End
      These fields show the start and end date of the obligation period. If you opened this form from the MTD Obligations and Returns form, the dates are defaulted from that form.
      Box Number
      Specify the VAT Return box number that must be adjusted. If an adjustment can be made to 2 or more boxes, use different rows for each box. You can also add multiple rows for one box number.

      For every box calculation that you want to adjust, you must create a row in the MTD Adjustments form and specify the box to be adjusted.

      Amount
      Specify the amount of this adjustment.
      Adjustment Date
      Specify the date of the adjustment. This defaults to the current date.
      Notes
      Enter notes to explain this adjustment.
      Status
      This field displays a Pending status until the VAT Return is submitted. At that time, the status changes to Submitted.
    3. When you save your changes and close the form, the adjustments for each VAT Return box are summed and displayed in the appropriate Adjustment field in the MTD Obligations and Returns.
  8. The Final Amounts fields display the sum of the Calculated Amounts plus any Adjustments for each VAT Return box.
  9. When you have ensured that the amounts are correct for this obligation, you can submit your VAT Return.
    See Submitting a VAT Return to HMRC (MTD).