WHAT IS MTD?
MTD is that digitally generated records by all registered businesses with VAT above the VAT threshold must be kept and sent to the Her Majesty’s Revenue and Customs (HMRC) system using third-party commercial software.
It includes three point especially;
• All data must be recorded digitally.
• Data must be transferred from one system to other digitally.
• VAT return must be provided to HMRC system via HMRC’s API.
All enterprises that has VAT over the VAT threshold (85.000 £ /year) must create digital tax account and send VAT return file to HMRC system on line quarterly after April, 2019. Enterprises that has VAT under the VAT threshold can be registered in this system voluntarily.
After April, 2020 all taxes will be mandatory in this system (income tax, corporation tax etc.)
HMRC specified that following groups will be out of this scope;
• Who cannot use digital tools for reasons of religion, age, disability, remoteness or any other reason
• Charities, (although trading subsidiaries of charities will not be exempt)
• Unincorporated businesses and landlords with annual sales below the £10,000 threshold
Records must be kept for 6 years. (If VATMOSS is used, they are kept for 10 years)
MTD XML CONTENT
Compulsory fields that must be in file are shown below.
• Supplier name, address and VAT number
• Vendor name, address
• Invoice number
• Accounting program name which is used
• Explanation includes quantity of goods and services
• Vat rate
• Gross amount of goods or service, VAT amount and net amount
• Discount details
• VAT exemption
Enterprises can add more information.
NETLE MTD SOLUTION
With Netle Yazılım –Global e-Transformation infrastructure, documents and standard audit files which are congruent with MTD requirements and legal mandatories can be prepared. Netle MTD solution which is created with electronic management tools or user interface by the scope of specific rules creates documents automatically according to public institution. Netle MTD solution completes the legal signing process of documents (if necessary) and archives them within the boundaries of the European Union according to customer requirements.
Throughout the entire process, the Netle Tick Tock System (NTTS) support platform provides 24/7 support for questions / problems.