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Topic

    Bami Fadairo
    Oracle Fusion 19B - Making Tax Digital - UK Tax Compliance
    Topic posted August 19, 2019 by Bami Fadairo, tagged Compliance, Financials, General Ledger, Payables, Public Sector, Receivables, Reports 
    70 Views, 3 Comments
    Title:
    Oracle Fusion 19B - Making Tax Digital - UK Tax Compliance
    Summary:
    Making Tax Digital UK Tax Compliant Solution
    Content:

    It appears it will take sometime before Oracle come around to providing a solution that is MTD compliant if at all. Has any customer found any solution that might work with Fusion and able to share?

    The HMRC deadline of October is fast approaching and will be highly grateful for any help.

     

    Thanks

    Version:
    Oracle Fusion 19B

    Comment

     

    • Margaret Walsh

      Please see the ERP Cloud Legislative Update Note on UK Making Tax Digital available on the Cloud Support ERP Cloud Legislative Update Center

      Oracle ERP Cloud: UK Making Tax Digital (VAT), April 2019 (Doc ID 2512821.1) - available in Cloud Support

      https://support.oracle.com/cloud/faces/DocumentDisplay?_afrLoop=366439831465283&_afrWindowMode=0&id=2512821.1&parent=DOCUMENT&sourceId=2328910.2&_adf.ctrl-state=gxnx3lsy5_79

      ERP Cloud does not include any specific features for the requirements of UK Making Tax Digital (MTD). Customers are able to configure ERP Cloud standard features that enable meeting the MTD requirements for the calculation and accounting/record keeping and supports the output of required data through standard reporting (including Tax Box Allocation reporting solution). However, the transmission of the VAT return itself must be handled by customer via partner or third party products.

      UK’s tax authority HMRC allows for this in the regulations and there are a number of solutions available ranging from simple spreadsheets to complex tax compliance type software. HMRC publishes a list of validated software for this purpose. See https://www.tax.service.gov.uk/making-tax-digital-software

    • Rajesh Dixit

      We have done more analysis on this and identified that there are 2 phases to this.

      1. Phase 1 :By Oct 1, 2019, VAT returns have to be done digitally meaning manual entry into HMRC will not be allowed. However there are several softwares and spreadsheet api links available to do this. However, in this phase manual intervention is allowed. eg. you can cut paste data from ERP software into this tool or spreadsheet

      2. Phase 2: By April 1, 2020, though all this has to be digitally linked, meaning there is no manual intervention allowed. This would mean an interface from the ERP to this third party software or spreadsheet.

      Rajesh

      • Margaret Walsh

        Rajesh

        Please review the HMRC guidance on Digital links in the VAT Notice 700/22 - section 4.2.1 gives details of what is meant by digital links. and section 8 gives examples of scenarios of use of where a 'set of compatible software' is used.

        https://www.gov.uk/government/publications/vat-notice-70022-making-tax-digital-for-vat/vat-notice-70022-making-tax-digital-for-vat

        Yes, you are right as from 1-Apr-2020 for most businesses the digital links must be in place. However, this does not change the advice provided in the ERP Cloud Legistlative Update Note I provided previously.

        A digital link can be a variety of things, including (as per the VAT notice)

        • A digital link includes linked cells in spreadsheets, for example, if you have a formula in one sheet that mirrors the source’s value in another cell, then the cells are linked.
        • mailing a spreadsheet containing digital records so the information can be imported into another software product
        • transferring a set of digital records onto a portable device (for example, a pen drive, memory stick, flash drive) and physically giving this to someone else who then imports that data into their software
        • XML, CSV import and export, and download and upload of files
        • automated data transfer
        • API transfer

        This list is not exhaustive

        All Oracle ERP tax reports, including the flexible reporting solution 'Tax Box allocation' ( Tax Box Preparation Report) allows for the output to be in various digital formats including XML, CSV, excel etc. which can be imported to bridging software or indeed a spreadsheet which is able to transmit the data to HMRC.

        Regards

        Margaret