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Sales tax group & Tax registration number based on delivery address on order level

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Posted on by Devanshi shah

Hi Experts,

We need to start calculating sales tax based on the delivery address, and the corresponding tax registration number should also populate accordingly. We have already created sales tax groups with the correct destination-based setup. I also noticed the option in Terms of delivery to use “Delivery” as the taxable address. However, when we test this using a customer with these settings, no sales tax is calculated.

We are also using Globalization Studio, so the Sales tax group and Item sales tax group fields are greyed out. Additionally, in Free text invoices, we are unable to add an item sales tax group manually.

Has anyone faced a similar issue or can suggest what might be missing?

Any help is appreciated.

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Dynamics 365 Finance

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Paolo Cecchelli 447 on at

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Hi,

I was able to test it in a Demo environment and these are the setups that worked for me:

- The address has a "Delivery" purpose (did youcheck that?):

- The sales tax on the advanced option of the same address:

- The option "Delivery" on the "Terms of delivery":

This works in my case to have the sales tax brought on the lines, do you have the same setup?

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Giorgio Bonacorsi 1,577 on at

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Hello,

Using Globalization Studio, you can add criteria based on variables from the address specification (such as province) to determine the sales tax group.
D365FO first applies the standard logic to calculate the sales tax group, then overrides it based on the rules configured in Globalization Studio.

If you have to deal with several criteria (like in the US or Canada), I suggest using Globalization Studio.
Otherwise, you can follow Paolo's solution, it's good and affordable as well.

Setup

Criteria into Globalization studio - Tax calculation:

Add criteria:

Define your sales group relation:

Configuration in D365FO

Thank you,

Giorgio

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Devanshi shah 19 on at

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Hi Paolo,

Thanks for providing the detailed steps. The setup worked as expected for the Sales tax group, and it is now reflecting correctly on the sales order header.

That said, the Tax Registration Number is still not being populated on the order header when the delivery address is selected.

Could you advise on what might be causing this behavior?

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Devanshi shah 19 on at

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Hello Giorgio,

Thanks for the detailed steps related to Globalization Studio. Based on my observations so far, I think we may need to use this option for the registration number on the order. However, I am still trying to work with the existing setups and configurations suggested.
I’ll keep you updated on the progress.

Regards

Devanshi

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Paolo Cecchelli 447 on at

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Hi Devanshi,

yes for the tax registration the only way I know of is activating this flag on the tax calculation parameters that requires the activation of the tax calculation framework:

By doing like this, this message should appear when you selct the address:

Good luck

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Devanshi shah 19 on at

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Hi Paolo,

Yes, I already have this setup turned ON as we are using tax calculation & Globalization studio too. However, I noticed two things due to which I have raised this question:

With this setup enabled, we also need to mark the Business field as Sales (Type of transaction).

It worked only for one address. For example, my customer has two addresses (NLD and NOR)

The setup worked correctly for the NLD address, and I received the notification along with the VAT number. But for the NOR address—which is also the primary address—I did not receive any notification, nor was the VAT number populated on the order. Additionally, as per observation the Tax-exempt number dropdown currently shows only the NLD number on sales order header.

On the party record, I have three addresses:

2 NOR addresses (1 Business, 1 Delivery)

1 NLD address (Delivery)

So, it seems the issue might be related to how the Party ID is associated with these customer addresses.

Thanks in advance for the help!

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