Hello Emma, 

I was hoping to get some clarity on SAGE's MTD functionality. I am on subscription software so am told its MTD compliant, however I run SAGE on EUR base currency.

I have asked SAGE in the past about this and was told that the current SAGE software functionality would currently submit my MTD VAT Returns EUR figures as if they were GBP which would be submitting incorrect data.

I was then told that there is a way to manually input the totals of each VAT box just before submission allowing me to effectively submit the correct GBP equivalent to my VAT Returns, however I would then need to run some correction journals and run my VAT return again on SAGE with the correct EUR figures... all very confusing.

Will the Bespoke training for MTD touch on this issue and give me indication on this work around until SAGE come up with a fix on a future update?

Would it not be simple enough for your developers to add a functionality at the MTD VAT Return Submission software to detect if its being run on a base currency other than GBP and automatically convert the figures to GBP using the SAGE exchange rate before submitting them? 

SAGE technical support has told me on the 28/01/19 that come 01/04/19 all will be well and 100% MTD compliant also for business like ours running SAGE on non GBP base currency but every time I call I get a different answer, today for example SAGE told me to post this issue in the SUBMIT IDEAS box as if nothing was knows or being done in relation to this and I hope you appreciate with the 01/04/19 deadline looming this was quite a shocking response.

This is why I am looking to get more info on the workaround if there is one and happy to invest in the bespoke training if this is will give me some answers.

Please advise.

Hi Martin,

Thanks for getting in touch.

The HMRC guidance on foreign currency transactions and VAT (at https://www.gov.uk/guidance/foreign-currency-transactions-vat-and-tour-operators), advises that all sales and purchase transactions must be converted to sterling in your accounts for VAT purposes. This hasn't changed with the introduction of Making Tax Digital.

To comply with this guidance in Sage 50cloud Accounts, you need to record your accounts with a sterling base currency and use the Foreign Trader feature to post Euro sales and purchase transactions. This is something our bespoke training service could help you with if required.

I'm sorry you haven't had a clear answer on this previously and I hope this clarifies things.

Regards,

Emma

Hello Emma,

thank you for your reply, I'll pass the info onto our accountant to be reviewed.