5
Description of problem:
Making Tax Digital functionality (ER configurations, data packages etc.) works fine only for entities with country\region = GBR. It has been assumed that company needs to be located in UK to be a UK tax payer. This assumption is completely incorrect. A company from any country/region in the world can be registered as UK tax payer (therefore, it will be mandatory for such company to provide VAT return declaration through MTD). Such company is called as non-established taxable person in UK.
We have a customer with many entities - one of them is UK entity - located in UK and paying taxes in UK - we can setup MTD for this entity without any problem.
Another of entities is New Zealand entity which, in the same time, is non-established taxable person in UK.
Therefore, this entity needs to pay taxes in NZ (and it's located in NZ so country/region must be set to NZ) and the same time pay taxes in UK (through MTD).
We tried to change validation in ER elements but even after adjusting validation to allow NZ country/region to use it we still have errors from Electronic Messages framework that this functionality does not support the country/region of the current entity (which like I explained is a mistake). It is not possible to split this into two entities because of many legal reasons.
This suggestion is to allow for the MTD feature to be available for legal entities that are not setup as UK entities to but are paying UK taxes to be able to use the MTD feature.
Making Tax Digital functionality (ER configurations, data packages etc.) works fine only for entities with country\region = GBR. It has been assumed that company needs to be located in UK to be a UK tax payer. This assumption is completely incorrect. A company from any country/region in the world can be registered as UK tax payer (therefore, it will be mandatory for such company to provide VAT return declaration through MTD). Such company is called as non-established taxable person in UK.
We have a customer with many entities - one of them is UK entity - located in UK and paying taxes in UK - we can setup MTD for this entity without any problem.
Another of entities is New Zealand entity which, in the same time, is non-established taxable person in UK.
Therefore, this entity needs to pay taxes in NZ (and it's located in NZ so country/region must be set to NZ) and the same time pay taxes in UK (through MTD).
We tried to change validation in ER elements but even after adjusting validation to allow NZ country/region to use it we still have errors from Electronic Messages framework that this functionality does not support the country/region of the current entity (which like I explained is a mistake). It is not possible to split this into two entities because of many legal reasons.
This suggestion is to allow for the MTD feature to be available for legal entities that are not setup as UK entities to but are paying UK taxes to be able to use the MTD feature.
STATUS DETAILS
Completed
Administrator
Thank you for your feedback.
MTD feature capability is extended and starting from 10.0.20 can be used in legal entities with primary address in any country.
This extension was implemented as part of the “Multiple VAT registration numbers” project: Multiple VAT registration numbers (Preview) - Finance | Dynamics 365 | Microsoft Docs
Find more details about MTD feature usage outside the UK: https://docs.microsoft.com/en-us/dynamics365/finance/localizations/emea-gbr-mtd-vat-integration#using-the-mtd-feature-outside-the-uk
Sincerely,
Elizaveta Golub
PM, Microsoft.