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2/28/2019
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United Kingdom - Making Tax Digital for VAT In Dynamics 365 For Finance And Operations
Adam TrukawkaElizaveta GolubMicrosoft Dynamics Globalization
This presentation contains Microsoft Confidential Information. Microsoft may use any suggestions, comments, or other feedback that you provide for any purpose without obligation. This presentation is provided for informational purposes only and represents Microsoft’s view as of the presentation date. Microsoft cannot guarantee the accuracy of any information after the presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted as a commitment on Microsoft’s part. This presentation is provided “as-is”.
Microsoft Dynamics 365 for Finance and Operations solution for Making Tax Digital for VAT in the United Kingdom is pre-release software under development. All dates and features specified are preliminary, are based on current expectations, and are subject to change without notice. Microsoft may make changes to specifications and product descriptions at any time, without notice.
Sample code included in this presentation is made available AS IS. THE ENTIRE RISK OF THE USE OR THE RESULTS FROM THE USE OF THIS CODE REMAINS WITH THE USER.
MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION. NO LICENSE, EXPRESS OR IMPLIED, BY ESTOPPEL OR OTHERWISE, TO ANY INTELLECTUAL PROPERTY RIGHTS IS GRANTED BY THIS PRESENTATION.
© 2019 Microsoft Corporation. All rights reserved.
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GlobalizationTools &Services
Localizationsby Microsoft
Localizationsby ISVs /partners
Agenda
UK MTD for VAT overview
D365F&O Implementation
HMRC Service endpoints
Solution overview
Configuring VAT declaration
Configuring submission process
Submitting VAT declaration to
HMRC Sandbox
Q&A
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What has changed in the UK tax reporting?
On July 13, 2017, the Financial Secretary to the Treasury and Paymaster General in the United Kingdom announced MakingTax Digital (MTD) for VAT
New law requires keep accounting records in a digital form and preserve them up to 6 years
New regulations will take effect on April 1, 2019 Deliver to HMRC through MTD for VAT application programming
interface (API) VAT return created from the digital records that are held in functionally compatible software
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The MTD for VAT solution overview
Electronic Reporting
• Configurable VAT Declaration electronic report format• Configuration of incoming and outgoing messages• Parameterization and support for OAuth 2.0 authorization process • Dynamic address requests to different endpoint of the same web-service
Electronic Messages
• Supports the process of interoperation with all MTD for VAT service endpoints• “UK MTD VAT returns” processing with production HMRC application• “UK MTD VAT TEST” processing for testing interoperations with HMRC’s sandbox application
Data management
•Import-export data package with predefined configuration
Dynamics 365 for Finance and Operations - scope of the solution
New VAT declaration configurable electronic report producing output in JSON and Excel file format.
The solution includes mandatory scope for interoperation with HMRC webservice: Retrieve VAT obligations Submit VAT return for period
Optional requirements implemented in the solution Retrieve VAT liabilities Retrieve VAT payments
Partners will be able to configure remaining or any additional upcoming optional processes or service end points, if necessary:o View VAT Return
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VAT Declaration setup
Importing Electronic Reporting configurations
Import from LCS the following Electronic Reports configurations:
Open Electronic reporting | Reporting configurations Select electronic Messages framework model | MTD VAT
model mapping and set it up as “Default for model mapping” Select Tax declaration model | Tax declaration model
mapping and set it up as “Default for model mapping” Select Tax declaration model | VAT declaration JSON (UK)
and click on Configurations | Application specific parameters | Setup on the Action pane. Then import application specific parameters from an XML file with predefined set of criteria.
Select Tax declaration model | VAT declaration Excel (UK) and click on Configurations | Application specific parameters | Setup on the Action pane. Then import application specific parameters from an XML file with predefined set of criteria.
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General ledger parameters setup
Tax | Setup | General ledger parameters | Number sequences - Setup two number sequences: Message
Message item
Tax | Setup | General ledger parameters | Sales tax: VAT statement format mapping =
“VAT Declaration Excel (UK)”
VAT Declaration electronic report setup
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HMRC MTD for VAT Service environment overview
HM Revenue and Customs: Making Tax Digital for Value Added Tax
SandboxBase URL: https://test-api.service.hmrc.gov.ukAccess: Any company or personRegistration: as a developer on “HMRC Developer Hub” Create an application of “Sandbox” type Subscribe for “VAT” and “Create test user” APIs Add a redirect URL: urn:ietf:wg:oauth:2.0:oob
ProductionBase URL: https://api.service.hmrc.gov.ukAccess: Companies registered for VAT in the UKRegistration: as a VAT registered company • Create an “HMRC online account”• Link “HMRC online account” to an HMRC-compatible
software: • Microsoft Dynamics AX 2012 R3• Microsoft Dynamics 365 for Finance and Operations
• Currently HMRC allows registration to pilot MTD for VAT
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Electronic Messages Setup
EM Setup: Configuration – Data entities package
Download from LCS | Shared asset library | Data package “UK MTD-VAT setup.zip”
Switch to the company where you are going to work with MTD for VAT feature
Open Data management, click on Import and select the “UK MTD-VAT setup.zip” file you have downloaded. Import it.
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EM setup - Sales Tax Settlement period
Open Tax | Setup | Electronic messages | Populate records actions
Select “Populate VAT return records”
Select “VAT payment” on Datasource setup and click “Edit query”
Define Settlement period for which Sales tax payments must be considered for reporting
EM setup - Web application
Setup Web application parameters: Tax | Setup | Electronic messages | Web applications
Base URL
Authorization URL path
Token URL path
Redirect URL path
Client ID, Client secret, Server token
Authorization format mapping
Import token model mapping
Web request parameters: Accept, Content type
Security roles
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Test user retrieving (for testing in Sandbox)
Authorizing in HMRC
Retrieving Test user request
Get Test user: Tax | Periodic | Electronic messages New: Action “Create test user request”
Generate report: Action “Generate test user request”
Copy from the attached response:
User ID - will be used to sign in to HMRC
Password - will be used to sign in to HMRC
VRN – need to be setup as Tax exempt number in the Legal Entity (for testing purposes only)
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HMRC AuthorizationAuthorize and Get Access token: Tax | Setup | Electronic messages | Web applications: Sandbox and Production
Get authorization code: Scope = read:vat write:vat
Obtain access token: Paste Authorization code from HMRC for 10 minutes
Access token is valid for 4 hours
Access token can be refreshed for Web applications form by Refresh token button
During interoperation with HMRC access token refreshing is done automatically
Send report: Action “Submit VAT return”
When VAT return is submitted, related fields are updated in Dynamics 365 for Finance and Operations
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Retrieving VAT obligations
New: Action “Create VAT obligation request”
Specify “From date” and “To date” of the period to retrieve VAT obligations for.
Send report: Action “Retrieve VAT obligations”
VAT obligation periods will be created or existing updated.
Tax | Periodic | Electronic messages | Electronic messages
VAT return generation in JSON
Collect data: Action “Populate VAT return records
Update status: Action “Ready to generate VAT return”
Generate report: Action “Preview VAT return”
Generate report: Action “Generate file for submission”
Review attached JSON before sending to HMRC
Tax | Periodic | Electronic messages | Electronic messages
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VAT return submission to HMRC
Tax | Periodic | Electronic messages | Electronic messages
Send report: Action “Submit VAT return”
When VAT return is submitted, related fields are updated in Dynamics 365 for Finance and Operations
Security privileges, duties, rolesSecurity privilege Access level description Associated withMaintain electronic messages
The Maintain electronic messages privilege gives full access to the electronic messaging functionality. It allows to set up electronic messaging and execute all the processing.
This privilege is included in the Maintain sales tax transactions security duty which in turn is included in the Accountant security role.
View electronic messages
The View electronic messages privilege gives read-only access to the electronic messaging functionality. It allows to view both the electronic messaging settings and messages/items but does not allow to set up or execute anything.
This privilege is included in the Inquire into sales tax transaction status security duty which in turn is included in the following security roles: Collections manager, Accounts receivable clerk, Accounts receivable manager, Tax accountant, Accountant, Accounting manager, Accounting supervisor, Sales manager, Accounts payable clerk
Operate electronic messages
The Operate electronic messages privilege gives access only to the "Electronic messages" and "Electronic message items" forms and allows to execute all the processing which are called from these forms.
This privilege is included in the Operate electronic messages security duty which in turn included in the only security role Electronic messages operator
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Q & A
• Microsoft Dynamics Localization and regulatory features: https://docs.microsoft.com/en-us/dynamics365/unified-operations/dev-itpro/lcs-
solutions/country-region
• Microsoft Lifecycle services / Globalization portal: https://support.lcs.dynamics.com/RegFGlobalizationPortal/Index
• Electronic reporting: https://docs.microsoft.com/en-us/dynamics365/unified-operations/dev-itpro/analytics/general-electronic-reporting?toc=/fin-and-
ops/toc.json
• Electronic Messages: https://docs.microsoft.com/en-us/dynamics365/unified-operations/financials/general-ledger/electronic-messaging
• Data management: https://docs.microsoft.com/en-us/dynamics365/unified-operations/dev-itpro/data-entities/data-entities-data-packages?toc=/fin-and-
ops/toc.json
• MTD legislation overview: https://www.gov.uk/government/consultations/making-tax-digital-reforms-affecting-businesses/making-tax-digital-for-vat-
legislation-overview
• Making Tax Digital: how VAT businesses and other VAT entities can get ready: https://www.gov.uk/government/publications/making-tax-digital-how-vat-businesses-and-other-vat-entities-can-get-ready/making-tax-digital-how-vat-businesses-and-
other-vat-entities-can-get-ready
• Collection: Making Tax Digital for VAT: https://www.gov.uk/government/collections/making-tax-digital-for-vat
• Making Tax Digital (MTD)-VAT End-to-End: https://developer.service.hmrc.gov.uk/api-
documentation/assets/content/documentation/f66c79c2c4fc2f0cf27c158b2411a1b2-MTD-VAT%20End-to-End%20(E2E)%20Customer%20Journeys.pdf
UK MTD for VAT - Useful links
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Yammer group: https://www.yammer.com/dynamicsaxfeedbackprograms/#/threads/inGroup?type=in_group&feedId=17055599&view=all
Contact us
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