VAT registered businesses that have a taxable turnover exceeding the VAT threshold are now required to record and submit their VAT returns digitally using Making Tax Digital (MTD) compatible software.
DragonDMS offers a couple of solutions for this:
1. Sage Integration
Our long established and comprehensive integration with Sage, their Sage50c product, is MTD ready. Our integration will post all sales and purchase invoices directly into Sage50 and your MTD VAT return can be run from Sage50. Using Sage50 will give you full accounting features including balance sheet, P&L, supplier statements and bank reconciliations as well as submitting your VAT return digitally.
2. VAT Return within DragonDMS
For businesses that don’t use Sage, and just want to be able to submit a VAT return, this can now be generated and submitted directly from DragonDMS to meet your legal requirements with Making Tax Digital. To utilise this feature you must ensure all of your business expenses and sales invoices are recorded within DragonDMS.
The new Accounts module has features allowing users to add all general expenses (i.e. advertising costs, overheads, software fees) and any ad hoc sales (i.e. car storage or vehicle hire) into DragonDMS.
Sales of vehicles, service jobs and parts sales must still be created in the relevant modules of DragonDMS, and any costs incurred for these sales should still be added to the relevant vehicle, service or parts record to ensure accurate sales/cost of sales reporting by department.
To generate and submit a VAT return you will need to link DragonDMS to your HMRC account and grant authority for Dragon2000. Once this link is setup your VAT obligations (VAT periods) will be displayed in DragonDMS and the VAT Return can be run and submitted.
To enable the VAT Return within DragonDMS please contact our support team on 01327 222 333 (option 1).