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Impact on changing 'Normal Tax' to 'Sales Tax'

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Posted on by NI-V3

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An US organization, using Business central for 3 years. Recently we plan to introduce State wise sales tax. The 3 years data was posted as "Normal tax".

Can we introduce the "Sales Tax" along with Tax Jurisdictions, Tax area and tax group?
What will be the impact of financial data when the tax setup is changed to "Normal Tax" to "Sales tax"?

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Andrés Arias 767 on at

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Impact on changing 'Normal Tax' to 'Sales Tax'

Hello,

Yes, it is possible to make the change and it does not affect historical movements.

It is important to configure: Tax Jurisdictions, Tax Areas, Tax Groups and Customer and Item tax setup accordingly.

I hope I can help.

Regards,

Andrés
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Khushbu Rajvi. 17,404 Super User 2025 Season 1 on at

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Impact on changing 'Normal Tax' to 'Sales Tax'

Yes, switching from manual ("Normal Tax") to automated Sales Tax setup has no impact on historical data—Business Central just moves from manual tax posting to automatic calculation based on jurisdictions, areas, and groups.
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Jun Wang 7,761 Super User 2025 Season 1 on at

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Impact on changing 'Normal Tax' to 'Sales Tax'

I guess by normal tax, you post the tax manually to a tax account? Switching to Tax Jurisdictions, Tax area and tax group doesn't have other financial impact per my understanding, BC just calculate the tax amount based on the setup and post to the designated account. The main difference is go from manual to automatic.