Tags
New Tax Service, Sales Tax, Tax, Tax Service, Taxation, Value Added Tax, VAT
A first introduction into the D365 tax service
01 Monday Aug 2022
Posted in Accounts Payable, Accounts Receivable, General Ledger, Miscellaneous
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Microsoft BizApps Finance & Controlling %d
Below you can find an other recording regarding tax calculation service containing some additional scenarios and examples:
https://www.cegeka.com/en/be/solutions/tax-calculation-service-webinar
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Thank you Ludwig for this video.
Could be interested in the future to know how to implement this functionality for a customer currently running live. As far as I pushed my research we do not have the ability to retrieve all the tax setup from a production Dynamics environment by virtual entity. It will result to double the tax setup within Dynamics Finance after the RCS synchronization. My statement for the moment is that we cannot deploy this unless it’s a from scratch implementing project.
Could be good to have your insight about this.
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Hello Aymeric Piccin, I think it is possible to deploy it even if you have an existing tax setup in place. It might be a bit tricky especially if you have many open orders but it should be possible. The question is why one would do that if the current tax setup is working fine and covers all business processes?
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Hello Ludwig, In France I think of the reverse tax which is mandatory since 01-2022.https://www.pwcavocats.com/fr/ealertes/ealertes-international/2021/reverse-change-mechanism-import-vat-january-2022.html
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We have a project, where we started only with one part of the business. Now, other part of the business is coming and with it whe have a topic with multiple VATs. So i would have to implement it in running project, even if the current setup works for now.
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Thanks Ludwig
We are looking to implement Tax Calculation service for a UK trading company. My question is the shortcomings you highlighted in regards to VAT ID and recharge VAT codes on purchases, have those been resolved and working in the latest version?
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Hi Shaun,
Some of the things I mentioned have already been fixed in the latest built (e.g. VAT ID number based tax determination). There was a TechTalk on this last week as far as I remember. Check out the recording once it becomes available.
Best regards,
Ludwig
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Ludwig, I forgot to ask, can you use existing VAT codes/Groups in the Tax calculation configuration? Or does it always have to be new ones?
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Hi Shaun,
I have not tested this but it should be possible to use existing ones by making use of lookups the same way as this is done with virtual entities for countries, VAT groups, etc.
Would be great if you could check it out and share here.
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Please also have a look at the most recent TechTalk that addresses some of the shortcomings mentioned in the post.
https://community.dynamics.com/365/dynamics-365-fasttrack/b/techtalks/posts/what-s-new-in-the-oct-2022-release-for-tax-calculation-service-september-27-28-2022
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Hi Ludwig,
Thank you for your walk through on this, it is extremely useful! I have a question about calling the tax calculation service, can we call this service on batch i.e. for multiple SO etc? As it seems quite manual to call the service through the “Sales Tax” button.
Thanks,
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Hi, The tax service will automatically be called when you record a transaction e.g. post an invoice. You don’t have to select the ‘sales tax button’ for that. I did that only to show how the sales tax calculation works and how it is identified.
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Your blog post about VAT was extremely helpful. It explained the different types of VAT and how they apply to businesses in a way that was easy to understand. I would highly recommend this post to anyone looking to learn more about VAT and the benefits of using a VAT service.
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Hello Ludwig,
Are project invoices supported? (From PMA module). I see only “Sales invoices” in the documentation. Hopefully they mean projects as well!
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Hi Lukas, They should be in the meantime. Also check out the D365 roadmap on what’s coming up next in regards to tax service coverage. Best regards, Ludwig
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Hello Ludwig,
Have you ever tried to setup excise taxes ? We have a customer buying alcohols, beverages, tobacco,… and there are a lot of Belgian/EU excise taxes linked to that. All the computations are specific per item! Example : 18,6652 (excise) X quantity of alcohol in one bottle (0,7liter for instance) X alcohol degrees 0,4 (40%) = 5,23€. We’ve seen a lot of add on on Business central to manage that but none on F&O meaning probably that there should be a way to handle in a standard way? For tobacco it’s linked to the weight and therefore it’s different per item.
Any idea how to handle these requirement?
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Hello Quentin,
I never used the tax engine for setting up excise taxes. I don’t think that it was made for that purpose. You can possibly ask the product team directly. As far as I remember, there is a TecTalk tomorrow 😉
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Thanks Ludwig, i’ll ask (I tried with the Q&A of today’s techtalk but they didn’t feature it)
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Hello,
I believe it had had been one comment of using Tax calculation together with D365 tax configuration. Reading MS documentation (e.g. https://learn.microsoft.com/en-us/dynamics365/finance/localizations/global/global-get-started-with-tax-calculation-service?context=%2Fdynamics365%2Fcontext%2Ffinance) I’ve got impression that Tax calculation is on the top addition to default tax calculation mechanizm in D365. Therefore if it doesn’t find suitable tax code, default D365 tax codes are used.
I tried to setup both standard D365 and Tax calculation for testing purpose. Result was interesting, once Tax calculation is enable, transaction for customers not covered by scenarios defined in Tax calculation, cause error (missing tax code for combination of sale and item tax group). Customers covered by Tax calculation went without error. Once Tax calculation was turn off, no error was produced.
I was wondering if you have got similar experience.
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