MTD in non GBP base instances
MTD in non GBP base instances
If your company uses a base currency which is not GBP (e.g. EUR or USD) and you are required to submit a return to HMRC via MTD then you must convert the return to GBP before you submit it - using agreed HMRC conversion rates.
It is your responsibility to agree on conversion rates with HMRC. Note that these rates have been published by HMRC.
Carry out the following steps:
Go to Configuration > Currency Rate Types and create a rate type for holding agreed HMRC conversion rates - e.g. HMRC Rates.
Go to Configuration > Companies > VAT Reporting and enter GBP as the reporting currency and select (say) HMRC Rates.
Go to Reference > Currencies and define the (say) HMRC Rates be used.
Once this is set up, MTD VAT returns will be revalued at a transactional level using the defined rates.
Don't forget to keep your HMRC rates up to date.