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Finance | Project Operations, Human Resources, ...
Answered

Is there an ISV for VAT on the purchase side?

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Posted on by 2,442

Hi All, 

Does anyone know of an ISV to calculate VAT tax on the purchase?  If so, please recommend a few vendors. 

Also, does this ISV do filing on the Recovery Tax on the tax return? 

Thanks so much 

I have the same question (0)
  • Ludwig Reinhard Profile Picture
    Microsoft Employee on at

    Hello Kim,

    For which country/region do you need that ISV solution and why?

    Can't the standard application cover all requirements?

    What is missing?

    Best regards,

    Ludwig

  • lmai Profile Picture
    2,442 on at

    Hi Ludwig,

    I'm concerned that we may not capture all the tax regulations and compliances in the EU countries (Austria, France, Germany, and Switzerland) in the addition to the tax rules/statutory tax rate changes.  We may face the risk of not compliance and have to pay fines to the local government.  In your opinion, is the VAT tax law pretty much stable and simple in EU?  Thanks.

  • Verified answer
    André Arnaud de Calavon Profile Picture
    303,724 Super User 2026 Season 1 on at

    Hi Kim,

    There countries are supported by the standard application. Once there will be  change in regulations, it will be updated by Microsoft. Rate changes can already be managed in the standard solution.

    So, there is no need for another solution.

  • Verified answer
    nmaenpaa Profile Picture
    101,166 Moderator on at

    As Andre mentioned, the legal tax and accounting requirements of each country where D365 is supported are covered by the standard application. By the way, Switzerland is not in EU :)

  • Verified answer
    Ludwig Reinhard Profile Picture
    Microsoft Employee on at

    Hi Kim,

    I can only support what Andre and Nikolaos mentioned.

    The countries that you listed don't change tax rates that often and even if they do, it is easy to update the tax rates.

    Another advantage is that they are all - except Switzerland - in the EU and have similar kind of regulations.

    For that reason, the setup and configuration in all EU countries is very similar.

    What is currently not fully covered are triangular or chain-tax tax scenarios.

    As an example, items are purchase in Poland, shipped to Germany, painted in Germany, shipped to France, welded in France and then send off to a customer in Spain.

    If you have such kind of complex tax rules to comply with, you are right that the standard features are not able to handle them completely.

    Yet, those trades are often so complex that you even need to consult a tax adviser how to record the tax correctly.

    If you don't have such complex tax processes, I would suggest to go with the standard application.

    Best regards,

    Ludwig

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