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Dynamics 365 Community / Forums / Finance | Project Operations, Human Resources, ... / VAT on delivery charge...
Finance | Project Operations, Human Resources, ...
Suggested Answer

VAT on delivery charges for items with different VAT Groups

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Posted on by leddy365 110

Hi,

Looking for some advice on how we calculate the VAT on delivery charges based on the items that are in the Sales Order, 20% vs 0% etc. Is there out of the box functionality for this?

Example:

Scenario 1

Item 1 - 10.00 + 0% VAT = 10.00

Item 2 - 10.00 + 20% VAT = 12.00

Delivery Charge = 1.99 (<--- how to we calculate the VAT on this charge based on the items)

Scenario 2

Item 1 - 10.00 + 0% VAT = 10.00

Item 2 - 10.00 + 0% VAT = 10.00

Delivery Charge = 1.99 (No VAT?)

Grateful for any insight on this, thanks in advance

leddy

I have the same question (0)
  • Suggested answer
    saurabh bharti Profile Picture
    saurabh bharti 15,039 Moderator on at

    How come in scenario 2 Item -2 not having VAT? how did you manage that? I think same you can manage item sales tax group on charge code

  • Community member Profile Picture
    Community member 2 on at

    Hai, For VAT on delivery charges, it usually follows the VAT rate of the items in the order.

     

    So in your first scenario, you'd split the VAT on delivery based on the mix of 0% and 20% items. In the second scenario, since both items are zero-rated, the delivery should also be zero-rated, so no VAT on that £1.99. You can usually manage this by linking the delivery charge code to the same tax group as the items. Hope that helps you....  vatcalc.onl

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