Making Tax Digital with SAP Advanced Compliance Reporting

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To cater the dream of digitalizing the tax system in United Kingdom, SAP offers Advance Compliance Reporting Service that helps organizations around the globe to electronically generate and submit the VAT reports to HMRC directly

This automation of HMRC submission not only helps in streamlining the whole VAT returns process but also help in avoiding duplication of data that HMRC already has. Post this automation there will not no waiting time for year end or specific period for real time data as HMRC will collect and process information as real-time as possible. 

MTD implementation will enable businesses to have a better visibility over their input and output tax calculation.  

This MTD solution can be implemented through SAP Localization Hub – Advance Compliance Reporting which runs on the Neo Environment of SAP Cloud ERP Platform. SLH-ACR is a SaaS delivery that helps organizations with VAT computations. 


HMRC’s Making Tax Digital


The deadline for Making Tax Digital initiative is nearing! Align your SAP Ecosystem with HMRC’s MTD initiative using SAP SLH – ACR

Speakers: Lokesh Subadhra

Digitalize Tax with SAP Advanced Compliance Reporting


Once the ERP is connected with Advance Compliance Reporting – VAT computations are done through the data that is replicated from the Data sources of the existing system. This data replication can be achieved through SAP HANA Smart Data integration or ABAP reports via safe OAuth2.0 Client Authorization. 


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 As part of UK’s Making Tax Digital process, the VAT submission to HMRC must be done through a 9-box report which represents 9 different VAT submission values. These 9 values are  

  • VAT due in this period on sales and other outputs 
  • VAT due in this period on acquisitions from other EC Member States 
  • Total VAT due (this will be the sum of the boxes 1 and 2) 
  • VAT reclaimed in this period on purchases and other inputs (including acquisitions from EC) 
  • Net VAT to be paid to HMRC or reclaimed you (this will be the difference between boxes 3 and 4)  
  • Total value of sales and all other outputs excluding VAT (including supplies to EC) 
  • Total value of purchase and all other inputs excluding VAT (including acquisitions from EC) 
  • Total values of all supplies of goods and related costs, excluding any VAT, to other EC Member States 
  • Total value of acquisitions of goods and related costs, excluding any VAT, to other EC Member States 


The configuration of this 9-box report in ACR will help in transmitting VAT returns information between the Digital Core being the Enterprise (ERP) and the HMRC via the API (Application Programme Interface) process delivery service provided by ACR. 

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