HMRC are withdrawing the ability to submit VAT returns by keying data into their online VAT account from 1st November 2022. From 1st November all VAT returns are required to be submitted using API enabled software.
Please see below for the details by product on how this will impact our users:
Sage X3
Is fully compliant with MTD for VAT, earlier versions contain the XML submission feature, however once the gateway is closed this will stop working. No customer communications are planned.
Sage Business Cloud Accounting
Sage Business Cloud Accounting is fully compatible and compliant with MTD for VAT and does not require any add-ons like spreadsheets do. Sage Business Cloud Accounting users without an identified MTD token will be warned by email communications and in-product messages that they must now comply with Making Tax Digital for VAT rules due to VAT online accounts closure on 1 November. This includes registering to MTD for VAT on HMRC’s website and connecting their software to HMRC’s systems. More information on product usage can be found here.
Note that businesses can still produce manual VAT returns for specific cases like choosing to use bridging software to submit their returns to HMRC, multi-company customers with a single VAT registration, or business that are part of a VAT group.
Sage Line 500/Sage ERP 1000
Historically, has not provided specific in product UK VAT functionality. The ability to perform Making Tax Digital VAT submissions was made available to supported versions of Line 500 and Sage ERP 1000 in 2018. It is unlikely that customers using these Sage solutions will be using the VAT online account. No customer communications are planned.
- Further reading
KB article "VAT Online Accounts Closure"
Sage City has useful information including troubleshooting and useful tips through the links below:
- https://www.sagecity.com/gb/sage-x3-uk/f/sage-x3-uk-announcements-news-and-alerts/177228/info-troubleshooting-mtd-useful-tips-bp-day
- https://www.sagecity.com/gb/sage-x3-uk/b/sage-x3-uk-support-insights/posts/mtd-issue-no-problem-here-is-what-we-will-need-from-you