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Dynamics 365 Community / Forums / Finance forum / Sales Tax Code- Exempt
Finance forum

Sales Tax Code- Exempt

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Posted on by Ramit Paul 22,809 Most Valuable Professional

Hello,

Quick Question around Sales TAX 

I am adding one of the Sales Tax Codes into the Sales Tax group, however wondering what really I need to do with 'Exempt' option in this.

Please let me know the functionality of 'Exempt' option while that is ticked and unticked.

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Categories:
Sales and Marketing
Retail
Financial Management
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  • Verified answer
    André Arnaud de Calavon Profile Picture
    André Arnaud de Cal... 306,230 Super User 2026 Season 1 on at

    Hi Ramit,

    Exempt means that you are not charging any sales tax. In that case, the invoice will calculate no sales tax, but a tax transaction will be created for reporting purposes. E.g. if I sell goods from my country to another  country, I'm able to invoice without applying taxes according to regulations. For some destinations, we have to provide a reason on the invoice. For that purpose, the exempt code can be used.

  • Ramit Paul Profile Picture
    Ramit Paul 22,809 Most Valuable Professional on at

    Brilliant, Thank you so much Andre, above cleared everything.

    An addition- Do you know, if I suppose adding a Salex tax code to any sales tax group in D365, is there any possibility to check whether the same tax code was created for exempt so that I can mark the same exempt in D365 whole adding into Sales Tax group?

  • André Arnaud de Calavon Profile Picture
    André Arnaud de Cal... 306,230 Super User 2026 Season 1 on at

    Hi Ramit,

    We are using the same tax code for different Sales tax groups where one has this option enabled and the other not. Depending on the reporting codes, we can do the correct reporting to the tax authority. From the Tax code form, you can inquire which Sales tax groups and Item sales tax groups are referencing a specific Tax code.

  • Ramit Paul Profile Picture
    Ramit Paul 22,809 Most Valuable Professional on at

    Thank you so much Andre

  • VH-06021452-0 Profile Picture
    VH-06021452-0 19 on at
    Please, can somebody help with that issue, that the Exempt code is not printed on standard SSRS invoice? I have setup the same language for customer as well as for description of particular Exempt code, but nothing is printed. Is there some required setup within parameters or Form setup? I can´t find any. Thank you! Veronika

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