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Conditional sales tax issue

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Posted on by devgirlX

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Hi,

We have a client that is using Conditinal sales tax functionality.

The problem is when they have customers that are paying later then the due date.

They need to report the sales tax on the due date and later when customer actually pays and they post the payment, the sales tax gets posted again and they need then manually create new payment journal to reverse it.

Is there some workaround for this so they dont need to do all steps manually or we need to do some development/customization?

Scenario:

Invoice: amount 100000+tax 25000=125000, due date 1.6.2021, sales tax 25000 needs to be reported on that date.

Customer pays on 1.7.2021 and whole amount 125000 gets posted, so the sales tax is posted again.

Thank you for help in advance

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Ludwig Reinhard Microsoft Employee on at

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Hi,

For which country/region has this setup been made?

I wonder why you have to report the sales tax on the due date? Is this a local regulation in your country?

Also, sales tax is usually not directly linked to payments. Can you explain whether you need a sales tax (VAT) or a withholding tax instead?

Many thanks,

Ludwig

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devgirlX 102 on at

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Hi,

It is for Sweden and the tax needs to be reported because of country regulations.

I need a sales tax.

Thank you

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Ludwig Reinhard Microsoft Employee on at

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Hello andjelalj,

I am not a Swedish tax expert but have not heard about a case where the tax would be posted again when you make a payment.

It might be something specific that has been setup in your company.

Can you probably share some of the setups made?

In addition, I would recommend having a look at the MS docs site for Sweden.

docs.microsoft.com/.../emea-swe-sales-tax-payment-report-sweden

There are some country specific features available that might have an impact on how your system is posting the tax.

Best regards,

Ludwig

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devgirlX 102 on at

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This setup is related to conditional sales tax and it is specific and it gets posted together with the net amount when the payment journal is posted.

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Ludwig Reinhard Microsoft Employee on at

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Hi,

Can you share some screenprints of the setup made?

Many thanks,

Ludwig

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devgirlX 102 on at

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Hi, it is set up like this :

global.hitachi-solutions.com/.../how-to-manage-conditional-sales-tax-in-dynamics-365-for-finance-and-operations

Sales tax code created and Conditional sales tax marked in parameters.

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Ludwig Reinhard Microsoft Employee on at

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Hi andjelalj,

Thanks for sharing the post.

It seems to refer to a US specific tax setting.

You mentioned that you need to make the setup for Sweden, which makes - to my knowledge - use of a European VAT tax regime.

I don't know if such a setup makes sense for Sweden and is needed there.

Have not used something alike so far in a European D365FO setup.

Maybe try to talk to your finance team whether and why they need this.

Many thanks,

Ludwig

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