ERPNext - HMRC Making Tax Digital for VAT Released!

This software release comes in two parts:

1. A new generic tax report called Tax Ledger, which is suitable not only for Goods and Services reports, but any Taxes in the General Ledger;
2. A full-featured HMRC Making Tax Digital for VAT integration that allows you to post the output of the report against your VAT obligations, plus see your existing VAT liabilities and payments directly in ERPNext.

Tax Ledger allows you to create a sectioned report using filters to include the General Ledger Entries you need for each of the 9 VAT Return boxes. The custom report can be saved and run any time in the future for any reporting period required.

The HMRC MTD for VAT integration downloads the obligations, liabilities and payments and allows you to post the output of your custom report against the relevant VAT period. It allows you to enter your own values in case you are using a special VAT scheme, and helps you create a closing period Journal Entry to keep things organised.

The module was originally released in May 2021, and is now listed on the HMRC website.

It is supported by ERPNext version 13 and later because it uses the virtual doctype feature released in that version.

We will be releasing a YouTube video in the coming weeks showing just how to create the VAT Report and submit your VAT Returns using the new feature.

Learn more here

Get in touch today if you want to find out more about our services or developments!