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Same customer multiple tax entities based on location of store

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Posted on by JT-04121520-0

Hello,

Switching over to D365 but wanted some details on configuring tax related to same customer but shipping out to different locations and how to set that up.

Thanks!

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Dynamics 365 Finance

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S Gopi Krishna 665 Super User 2026 Season 1 on at

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You can review these ms learn documents for more clarity. https://learn.microsoft.com/en-us/dynamics365/commerce/sales-tax-config https://learn.microsoft.com/en-us/previous-versions/dynamicsax-2012/appuser-itpro/set-other-tax-options-for-stores. Even though one of the documents is referring to an e-commerce store, the same configuration applies to a retail store as well

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Paolo Cecchelli 610 on at

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Hi,

sorry to me is not clear: by "store" do you mean Retail store or just a Customer with many Delivery addresses (so many doors)? Or is one invoicing customer with many customer accounts related?

If related to commerce, Gopi Krishna already replied. Instead:

1) If one customer with many delivery addresses, you can handle sales tax per delivery address by activating this setup on the terms of delivery (dbe careful that it will apply to ALL orders that use that Term of delivery):

Then you specify the sales tax on the delivery address by going into the advanced options of the address with purpose delivery:

And it will flow to your sales order:

Pay only attention that with this setup, if you choose the Term of delivery with the Sales tax specified for the delivery address, if you use it on an order and you do not specify it on the delivery address it will come to the Sales Order blank.

2) If you have one invoicing customer and many delivery customers you create the invoicing customer and the delivery customers and then use the "Invoice account" to relate the delivery customers:

When you create a Sales order the delivery address and sales tax will be defaulted from the delivery customers but the invoice will be posted on the invoice account:

Hope it helps

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Giorgio Bonacorsi 2,071 on at

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Hello,

You have two main options:

- The first is using Delivery terms (Paolo already provided a complete answer on this approach);
- The second is to use the Globalization service – Tax Calculation. This lets D365 Finance calculate the tax as usual initially, but then the Tax Calculation service overrides the result based on your configured rules. You can use any variable available on the order (such as zip code, city, state, etc.) as criteria to determine/allocate the appropriate sales tax group.

For more details: https://learn.microsoft.com/en-us/dynamics365/finance/localizations/global/global-tax-calcuation-service-overview?context=%2Fdynamics365%2Fcontext%2Ffinance

This second approach is particularly useful if you prefer not to rely on delivery terms and instead want the Globalization service to take full responsibility for defining the sales tax group based on conditions in your order lines.

Thank you,
Giorgio

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Syed Haris Shah 1,566 Super User 2026 Season 1 on at

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Hi @JT-04121520-0,

All of the approaches suggested by others should be helpful. However, I would recommend using the Tax Calculation Engine, as it is highly scalable and better suited to meeting your requirements.

This Microsoft TechTalk will also help you understand the approach and the overall architecture.

https://www.youtube.com/watch?v=JPgJ3DE1vTU&t=499s

If you find this answer helpful, please consider verifying the answer. 👍

Regards,

Syed Haris Shah

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Syed Haris Shah 1,566 Super User 2026 Season 1 on at

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Hi @JT-04121520-0,

If you have any updates, please share them here.

Regards,

Syed Haris Shah

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