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Finance | Project Operations, Human Resources, ...
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Implementing VAT in Dynamics AX 2012 R3

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Posted on by 250

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 ?

I have the same question (0)
  • Ludwig Reinhard Profile Picture
    Microsoft Employee on at

    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

  • AhmadHammoud Profile Picture
    250 on at

    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

  • Suggested answer
    MM-20051452-0 Profile Picture
    Microsoft Employee on at

    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

  • Suggested answer
    zeeshan.shaikh Profile Picture
    683 on at

    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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