Dynamics Community Forum Thread Details

Setup tax for digital service company which has Mini One Stop Shop (MOSS) & also international sales

Scenario: The company based in UK selling goods in UK, Europe, US, South Africa. For digital service company sale there is no broader and TAX is applicable and payable where the customer address.

Challenge: Selling company is UK, customer location is EU & New York, Vat is calculate at New York rate and payable to new York tax authorities, need to report both country i.e, US & UK (HMRC).

What is the best industry practice for tax setup for digital service company with international sale and EU vat MOSS in D365 finance. Best practice of coding Vat code, vat group, item vat group.

I was thinking of the below, let me know if there is any other way of addressing this.

Create in UK legal entity 2 tax authorities & 2 settlement period i.e New York and UK (HMRC)
Create sales tax code example:
- NY (8.875%) - settlement period NY
- GB_OSS (0% out of scope) - settlement period UK
Sales tax group: NY_SL with sales tax code NY (8.875%) & GB_OSS (0% out of scope)
Item sales tax group : ROW with sales tax code NY (8.875%) & GB_OSS (0% out of scope)During transaction if selected NY_SL & Row, will be able to file tax return in both countries i.e new York @ 8.875% and UK HMRC 0