United Kingdom: Making Tax Digital - fraud prevention headers - supplemented pack in Dynamics 365 Finance

Introduction

On July 13, 2017, the Financial Secretary to the Treasury and Paymaster General in the United Kingdom announced that Making Tax Digital (MTD) for value-added tax (VAT) will take effect on April 1, 2019.

Dynamics 365 for Finance and Operations starting from version 10.0.1 supports MTD for VAT of the United Kingdom.

To support the MTD for VAT requirements on Dynamics 365 for Finance and Operations version 7.3 the hotfixes were released: #4492999, #4493076.

The documentation about setting up and usage Dynamics 365 for Finance and Operations for MTD for VAT is published on https://learn.microsoft.com/en-us/dynamics365/unified-operations/financials/localizations/emea-gbr-mtd-vat-integration.

Additionally, HM Revenue and Customs (HMRC) introduced compulsory to supply header information for VAT API from April 2019 to prevent fraud. For more information, see Fraud prevention.

First part of fraud prevention parameters is supported in Finance starting from versions (KB # 4504462):

For versions 7.3 of Dynamics 365 for Finance and Operations the KB # 4504462 must be installed.

Next part of fraud prevention parameters about originating device when “WEB_APP_VIA_SERVER” connection method is used for interoperation with HMRC is supported in Finance starting from version (KB # 4513878):

For versions 7.3 of Dynamics 365 for Finance and Operations the KB # 4513878 must be installed.

Current update provides additionally to the previously delivered scope of the fraud prevention parameters possibility for system admin to manually set up fraud prevention headers which cannot be defined by Finance automatically.

Overview

For “WEB_APP_VIA_SERVER” connection method following headers Finance can define automatically (KB4504462, KB4513878):

For “BATCH_PROCESS_DIRECT” connection method following headers Finance can define automatically (KB4504462, KB4513878):

For “WEB_APP_VIA_SERVER” connection method following headers are also requested to be supplied in header of requests to VAT API by HMRC to prevent fraud:

Values for these headers can be specified by system administrator.

For “BATCH_PROCESS_DIRECT” connection method following headers are also requested to be supplied in header of requests to VAT API by HMRC to prevent fraud:

Values for these headers can be specified by system administrator.

Implementation details

System administrator can specify values of fraud prevention headers beyond those which can be defined automatically by Finance (KB4504462, KB4513878) on Supplementary headers fast tab of Web applications page starting from version 10.0.10 of Finance.

For versions 7.3 of Dynamics 365 for Finance and Operations the KB # 4541207 must be installed.

In Dynamics 365 Finance request headers for MTD VAT are composed by the “MTD VAT web request headers format (UK)” format in Electronic Reporting (ER) module. To include fraud prevention headers specified by system administrator on Supplementary headers fast tab of Web applications page to VAT MTD requests, the following or later versions of electronic reporting configurations must be used:

Setup

To prepare Finance to transmit fraud prevention headers beyond the list of automatically defined by Finance you must do additionally to pervious setup dedicated to fraud prevention the following steps:

1. Specify fraud prevention headers which you want to transmit additionally and values for them on “Supplementary headers” fast tab of Web applications page.

2. Import latest version (28.34 or later) of “MTD VAT web request headers format (UK)” electronic reporting configuration.

Supplementary headers setup

System administrator can specify fraud prevention headers to be transmitted to HMRC as part of request to VAT AP beyond the list of automatically defined.

1. Open Tax > Setup > Electronic messages > Web applications page and select the web application for which you want to define fraud prevention parameters on the left side of the page.

2. Open Supplementary headers fast tab and define headers names and their values.

It is important that names of the headers were defined exactly as required by HMRC. To avoid issues with naming of fraud prevention parameters, package of data entities for Electronic messaging – UK MTD VAT setup_v3 was extended with Supplementary headers.xlsx dataentity:

Download latest version of UK MTD VAT setup_v3 packagefrom Shared Asset library of LCS:

Import predefined data from the Supplementary headers.xlsx dataentity using Data management or if this is the first MTD feature setup – then this data entity will be imported to the system within the whole package.

Electronic reporting configurations setup

Import mentioned in Overview section or higher versions of the ER configurations.

Electronic reporting configuration download instruction from Lifecycle Services: https://learn.microsoft.com/en-us/dynamics365/unified-operations/dev-itpro/analytics/download-electronic-reporting-configuration-lcs

Important note!  When new versions of ER configurations are imported, check that following configurations are marked as Default for model mapping:

• Tax declaration model mapping

• MTD VAT model mapping (UK)

Starting from version 34 MTD VAT web request headers format (UK) provides possibility to extend the list of fraud prevention headers transmitting to HMRC as part of request to VAT API with values defined by system admin on “Supplementary headers” fast tab of Web applications page:

Headers for which no headers or values are setup on “Supplementary headers” fast tab of Web applications page these headers will not be included to the header of the request.

Important note!  API requests without fraud prevention headers may be rejected by HMRC. It is strictly recommended to address API requests to HMRC with fraud prevention headers.

Hotfix information

Electronic reporting configuration download instruction from Lifecycle Services: https://learn.microsoft.com/en-us/dynamics365/unified-operations/dev-itpro/analytics/download-electronic-reporting-configuration-lcs

More information

You can contact technical support for Microsoft Dynamics by phone using these links for country specific phone numbers. To do this, visit one of the following Microsoft websites:

Partners

https://mbs.microsoft.com/partnersource/resources/support/supportinformation/Global+Support+Contacts

Customers

https://mbs.microsoft.com/customersource/northamerica/help/help/contactus

In special cases, charges that are ordinarily incurred for support calls may be canceled if a Technical Support Professional for Microsoft Dynamics and related products determines that a specific update will resolve your problem. The usual support costs will apply to any additional support questions and issues that do not qualify for the specific update in question.

Note This is a "FAST PUBLISH" article created directly from within the Microsoft support organization. The information contained here in is provided as-is in response to emerging issues. As a result of the speed in making it available, the materials may include typographical errors and may be revised at any time without notice. See Terms of Use for other considerations.