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Negative Vat Adjustment

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Posted on by Sneha Mani

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Dear Members,

I have a requirement on how to set up a Negative Vat adjustment, specifically for applying a -5% rate to the Import Of Goods & Service. Can you assist me with the configuration for this?

Thanks in advance

Sneha

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Dynamics 365 Business Central

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Vinayak Vishnu Sagv... 325 on at

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Hi Sneha,

I would like to understand is it required for Import of Import of Goods and service?

If yes ,

Then follow the standard steps to create :

Step 1

Click on VAT Product Posting Group then create new VAT posting

VAT Posting Group Provide the Name "Negative VAT-5% Import

Set the VAT -5%

Step2

Create New VAT Rate

Provide the name Negative -5%

Set the VAT -5%

and attach to VAT posting Group

Step 3

VAT Posting Group link to Item card

Step 4

Create your PI and test the calculations and standard VAT reporting.

If No, Then explain the requirement in detail.

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Yi Yong 2,647 Super User 2026 Season 1 on at

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Hello Mani,

If you want to adjust the VAT value then you will need to create a new VAT Prod Posting Group.

Create a new GL and map to the VAT Prod Posting Group.

Insert this GL account to document.

You will need to calculate the deductible amount.

Result from VAT Entries.

You can see that the STANDARD Tax is 25% @ $25, the invoice tax was reduced by $5 and no change on Base amount.

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Khushbu Rajvi. 22,128 Super User 2026 Season 1 on at

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https://community.dynamics.com/blogs/post/?postid=ee534697-70e4-ee11-a73e-0022485061ec

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