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Finance | Project Operations, Human Resources, ...
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Does anyone knows if there is an Electronic Reporting config for International Tax or VAT?

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Posted on by 2,442

Hi All, 

Is there a way to configure VAT tax using Electronic Reporting?  If yes, could you please share the step document? 

If not, can Vertex or Avalara or any other ISV provides VAT tax calculation using their software?  thanks so much!

I have the same question (0)
  • André Arnaud de Calavon Profile Picture
    305,810 Super User 2026 Season 1 on at

    Hi Kim,

    Can you explain which process or business requirement you try to accomplish? Do you need the calculated Tax in Dynamics 365 or in an electronic report?

    There is a Dynamics 365 Tax Calculation Service. As I don't know what you try to achieve, I just post the link to the documentation, so you can check if this is what you need. Tax Calculation overview - Finance | Dynamics 365 | Microsoft Docs

  • Suggested answer
    nunomaia Profile Picture
    27 Moderator on at

    Out of the box using Tax calculation service you can setup Taxes / VAT for almost scenarios and countries. Advantage of Avalara of other third party, is that you don’t need setup, maintain rates, and tax codes, since those values are maintained by ISV.  

  • lmai Profile Picture
    2,442 on at

    Thanks, Andre', for your response.  I'm looking for the ability to calculate International VAT tax.  

  • lmai Profile Picture
    2,442 on at

    Thanks, Nuno, for your response. In 2019, I reached out to Avalara.  They didn't have the ability to calculation VAT in European countries.

  • Verified answer
    nunomaia Profile Picture
    27 Moderator on at

    Those external engines are most applicable for countries that rates and codes update frequently.

    in Europe, VAT codes can be stable for years. So, after inicial setup in D365 I don’t see the advantage of this service. 
    most counties have a few VAT codes 

  • André Arnaud de Calavon Profile Picture
    305,810 Super User 2026 Season 1 on at

    Hi Kim,

    What exactly do you mean with "ability to calculate International VAT tax? I asked for some more details about the process. If you need specific VAT/Sales tax setup for particular countries in the European Union, you can do the setup in Dynamics 365 F&O. Probably you can contact local partners for some help on VAT setup per country.

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