VAT changes

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Posted on by MRizwan

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Hi All

we want to change our VAT code due to reduce % for 6 month in Ireland . Currently setup 23% but coming 6 month we have to charge 21% so please help me to change this tax code 23 to 21% in D365 FO. Do we need to create new tax code with 21% or we can change current 23% code . Which option is best and tell me steps we need to follow for changing code.

regards

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Junaid Idrees on at

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Muhammad Rizwan,

The best approach is to create new tax code with 21% and specify the date range (From and To) on sales tax code >> value screen.

1. Go to Tax Module >> In-direct taxes >> Sales Tax >> Sales Tax codes

2. Create new Sales tax code

3. Specify settlement period, Ledger posting group

4. Click on Salex tax code button on top of the screen >> Click on value button

5. Specify From and To date, value (21%)

6. Add the new sales tax code in Sales Tax Group screen

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saurabh bharti 15,045 Moderator on at

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Hi Muhammad,

You need not to create new VAT code, you can add one more line with effective date range for the same VAT code.

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Ludwig Reinhard Microsoft Employee on at

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Hello Muhammad,

Agree with Saurabh, there is no need to create a new tax code, tax group or item sales tax group.

The only thing that is needed is that you specify the new rate and a date range in the sales tax code form.

My home country Germany has a similar tax rate change announced and we are doing something as follows:

Note:

There are special scenarios that are not fully covered in D365FO when it comes to those tax rate changes.

As an example, partial deliveries with partial returns that originate from a date before the tax rate change.

If you face those issues, manual tax changes might be needed.

So, please test things carefully.

Best regards,

Ludwig

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MRizwan 220 on at

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Thanks everyone . I will check and update you

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MRizwan 220 on at

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Thanks all done and working

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Chris__ 40 on at

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Hello together,

we have a similar problem that there are some credit notes from the reduced time. To change the tax itself is not a problem, but to book this on the right account is diffcult.

We have for example these accounts (depend on item group (article) and sales tax group in the customer)

account 1: revenue domestic Productgroup A 19%

account 2 : revenue domestic Productgroup B 19%

account 3: revenue domestic Productgroup A 16%

account 4 : revenue domestic Productgroup B 16%

From my point of view, there is only the solution to change the item group and the sales tax group in the order/credit note.

My problem is that the item group is not visible.

Are there any other solutions available?

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