VAT feature setup - KSA

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Posted on by Asim Saeed

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Dear All,

I am currently in the process of RnD for the VAT to be enabled/setup for one of the client within KSA. What i have seeing so far is, i am not seeing any difference to specifically enabled or customize the VAT feature to be enabled for KSA, In fact we can fully utilized the Sales tax feature to cater VAT. I can understand the difference for two in terms of (Tax amount imposed on final sales - Sales tax) to (Periodically vat imposed on every purchase to final sale and apparently given by consumer - VAT).

1) My question is am i missing anything by saying that we can fully utilize sales tax feature for VAT? or not.

2) Secondly the other way around is i am thinking to enabled IND VAT for KSA by removing all the config keys and walk through all the scenarios. But this is subjected to my question one if we cannot fully utilize the exisitng sales tax feature

3) Is there any other option?

Your guidance will be highly appreciated.

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Syed Fasih 2,442 on at

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Hi Asim,

This is a good question. The Saudi tax is still in its primitive times and therefore, you can go ahead and use the IND VAT which will satisfy the VAT requirements for VAT.

You may still need to see if the reporting functionalities available in IND localization fulfills the requirements set out in the Saudi VAT.

The concept of VAT is typically uniform across multiple localizations with the exception of the "Use tax". Therefore, you can make use of the multiple localizations which have VAT.

Please mark the response as verified if this answers your queries.

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Ludwig Reinhard Microsoft Employee on at

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Hi Asim Saeed,

What does KSA stand for?

For what do you use the abbreviation RnD?

Best regards,

Ludwig

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Asim Saeed 575 on at

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Thanks, Faish

But what about my question 1

1) My question is am i missing anything by saying that we can fully utilize sales tax feature for VAT? or not.

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Asim Saeed 575 on at

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Dear Ludwig Reinhard,

KSA is kindom of Saudia arabia and RnD is used for research and development.

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Syed Fasih 2,442 on at

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Except for the reporting requirements specific to KSA, you can fully utilize the sales tax feature.

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Community Member on at

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Hello Asim,

From my understanding, VAT in KSA is very new, so you want to make sure you fully understand what the requirements are. When I say this, I am talking about understanding how tax amounts are settled, if they are taxes that are like 'use tax', and etc. Secondly, based on your findings, I would open your sandbox environment and note the setup as well as test the VAT setup within AX. Based on that, you can best determine you best course of action.

From my understanding, I think the standard AX functionality for tax in AX should be enough for you to fulfill your requirements.

As far as IND VAT config, I would say that you can possibly look at some EU configs and see if that works. Reason I say this is because you can pretty much copy the tax setup from the Contoso environment (assuming that setup meets your needs).

Good luck!

-Fahad

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Ahmed Siliem 508 on at

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Hi Asim,

Microsoft has released a HF for this issue recently, just update your system with this HF. You can find it here.

P.S.: Make sure that it does not affect any of your customization and resolve all conflict. better to test on TEST SERVER first.

regards,

Ahmed Siliem

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Ahmed Siliem 508 on at

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Hi,

Check this link for HF from Microsoft.

Regards,

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Asim Saeed 575 on at

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thanks ahmen

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