Multi-Tax Authority Submissions

Normally, one entity will submit to a single Tax Authority. However an entity in one tax jurisdiction can submit VAT Returns in another jurisdiction.

This can be additionally complicated the the currency of the Tax Authority is different to the entity base currency. One such example is Northern Ireland (NI) and the Republic of Ireland (ROI). To get over this we have the concept of ‘Submission Currency’ and ‘Submission Exchange Rate’ which enables us to convert the invoices from (for example) GBP to the currency for the VAT Submission EUR.

MTD for Accounting Seed is setup to allow installation on single currency configurations. This means there is some additional configuration to setup a Multi-Tax Authority setup.

Multi-Tax Authority setup

Custom Settings

Change the Custom Setting ‘Multiple Tax Authorities’ to true.

Tax Groups

Each Tax Group belongs to one Tax Authority, and it is the Tax Group – Tax Authority that controls which invoices are processed in the VAT Return.#

• Tax Authority

Change the Global Picklist to two letter ISO Code (ie: IRL – IE and GBR – GB)

VAT Return

There are additional fields in the VAT Return that need populating. Some are setup when you add a New VAT Return, but these fields need updating manually:

• Tax Authority
  This is setup when you add a new VAT Return
• Currency
  This should be the Submission Currency (ie EUR for ROI, GBP for UK)
• VAT Registration Format
  This is a link to a PDF Format where the VAT Registration Number for the company is stored.

Reports

These reports need updating:

• VAT Detail
  Add Currency Field (from VAT Return)
• VAT Box Detail
  Add Currency Field (from VAT Return)
• Annual Return Billing Detail
  Add ‘Submission Currency’ and ‘Sub Total (sub)’
• Annual Return Billing Check
  Add ‘Submission Currency’ and ‘Sub Total (sub)’
• Annual Return Payable Detail
  Add ‘Submission Currency’ and ‘Sub Total (sub)’
• Annual Return Payable Check
  Add ‘Submission Currency’ and ‘Sub Total (sub)’