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Implementing VAT in Dynamics AX 2012 R3

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Posted on by AhmadHammoud

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The government introduced a 5% VAT starting April 2021. In our organization not much goes on the receivables side that requires setting up TAX, We are looking for adding VAT on purchase orders only. Will enabling and implementing Sales Tax be enough ?

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Ludwig Reinhard Microsoft Employee on at

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Hello Ahmad,

For which country/region do you need to setup VAT?

Do you need to change/increase the VAT percentage only or do you need to setup VAT from scratch because that is newly introduced by your government?

Are only vendor transactions affected by this VAT or do you also need to charge customers the VAT?

Best regards,

Ludwig

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AhmadHammoud 250 on at

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Thank you Ludwig, for the reply.

The country is Oman, we are implementing VAT from scratch, it was not introduced in the country before. Only vendor transactions are affected, as we don't have any customer transactions that are subject to VAT.

Regards,

Ahmad

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MM-20051452-0 on at

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Hi Ahmad,

There is no specific localization requirement for Oman in Ax 2012 and you can follow MS official documentation for sales tax setup:

docs.microsoft.com/.../set-up-and-use-sales-tax-codes

Although, starting from D365 Oman Tax authorities required Reverse Charge to be used for GCC trading which is not available in Ax2012.

Hence, Please check with your customer either to upgrade their current environment to D365FO or Customize Reverse charge functionality.

Regards,

Momen

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zeeshan.shaikh 683 on at

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Hi Ahmad,

You can use Tax groups and Item Tax Groups under General Ledger to start using VAT in AX 2012.

docs.microsoft.com/.../setting-up-sales-tax-groups-and-item-sales-tax-groups

You might need to have few customization if you want to rename Tax groups to VAT.

Regards,

Ali

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