This document will guide you through the set-up and configuration of the OpusVL MTD VAT module for Odoo.

The following subjects are covered:

  • Preparing your business for MTD
  • Preparing your Odoo for MTD
  • Setting up the module
  • Configuring MTD credentials
  • Testing your connection to HMRC
  • Refreshing authentication data

Who is MTD for?

For any business who turns over in excess of the VAT trading threshold, records must be kept digitally from 1st April 2019 and the first VAT return for a full period after 1st April 2019 will need to be submitted via MTD compliant software.

If you are unsure if this applies to you, contact your accountant or the HMRC VAT helpline.

Preparing your business for MTD

Before being able to use MTD, there are various pre-preparation activities which can be started before you can submit returns.

MTD depends on having an HMRC 'Government Gateway' account registered for MTD VAT. Therefore as a first step, make sure that you have your Government Gateway log-in details and have registered for MTD.

Note that once you have signed up for MTD, you will not be able to submit VAT returns manually so make sure that all returns are up to date before registering.

Review previous VAT returns, check that all transactions are included and that you are comfortable with your VAT posting transactions. MTD will post your errors as fast as it posts good data to HMRC!

Preparing your Odoo for MTD

Once your company is set up for Making Tax Digital for VAT, you can start to set up the Odoo MTD modules.

You will need to know:

  1. The company that you are setting up in Odoo
  2. Odoo VAT Input and Output accounts
  3. VAT liability account
  4. The date of the last manual VAT return (the cut-off date)

You will need to have thought about or set up:

VAT number
Make sure you have the VAT number configured in 'Settings -> Companies'.
Account reconciliation
Make sure the three accounts you configure in 'Accounting -> Making Tax Digital -> MTD Set-up -> Posting Template' have got 'Allow Reconciliation' enabled.
MTD start date
Decide when MTD starts. For example, if you set the date to 31st Jan 2019, when generating the VAT 100 report the system would include the entries from 1st Feb 2019 only.

Setting up the module

Credentials

The following credentials must be configured in 'Accounting -> Making Tax Digital -> MTD Setup -> HMRC Setup'

  • Name: HMRC Live Environment
  • HMRC Environment: Live
  • Server Token: Supplied by OpusVL
  • Client ID: Supplied by OpusVL
  • Client Secret: Supplied by OpusVL
  • HMRC URL: https://api.service.hmrc.gov.uk
  • Redirect URL: Use the base URL of your installation, i.e. https://your.odoocloud.uk/

MTD HMRC Set-up

Accounting set-up

The following data must be configured in 'Accounting -> Making Tax Digital -> MTD Set-up -> Accounting Set-up':

  • Company to which company MTD applies
  • MTD journal
  • Accounts the company uses for input and oputput VAT
  • Account the company uses for VAT liabilities
  • The date from which you want the Odoo MTD module to include transactions

Testing your connection to HMRC

Test the connection to HMRC using tools in 'Accounting -> Making Tax Digital -> MTD Set-up -> Diagnostics'

Test 1 : Basic Connection Test

Click 'Connect to HMRC' and check the response returned is as follows:

MTD HMRC HelloWorld

(Please note this image is from a test connection. On the live environment you will see https://api.service..., not https://test-api.service...)

[name=1039]We need to make it clear to users that they will be required to grant access to the application using their HMRC government gateway ID and password. If we could include some screens of these pages to ensure users are clear on what to expect when running these diagnostics.

Test 2: Application Authentication Test

Click 'Connect to HMRC' and check the response returned is as follows:

MTD HMRC User

(Please note this image is from a test connection. On the live environment you will see https://api.service…, not https://test-api.service…)

Test 3: User Authentication Test

Click 'Connect to HMRC' and check the response returned is as follows:

MTD HMRC App

(Please note this image is from a test connection. On the live environment you will see https://api.service…, not https://test-api.service…)

If the responses are in order, you are now set up and ready to use Odoo MTD.

Using the module

The MTD menu can be found under the main Accounting menu - look out for the MTD menu and sub-menu items.

Odoo MTD menu

VAT Management

The VAT Management menu offers the following tools:

  • Retrieve VAT Periods
  • Submit a VAT Return
  • View VAT Returns
  • View Unpaid VAT
  • Retrieve VAT Payments

Compliance

The Compliance tools enable review of previous submissions, underlying transactions and records to enable an audit of each return.