Tax Calculation service – enabling tax calculation parameters by tax jurisdiction
This content is archived and is not being updated. For the latest documentation, go to What's new or changed in Dynamics 365 Finance. For the latest release plans, go to Dynamics 365 and Microsoft Power Platform release plans.
|Enabled for||Public preview||General availability|
|Users by admins, makers, or analysts||Apr 16, 2021||Jan 14, 2022|
The digitalization of tax and the steady stream of indirect tax regulations that global businesses encounter, such as VAT and GST, have further complicated existing processes by introducing new industry and compliance risks that challenge leaders in every global enterprise.
Tax Calculation allows you to improve compliance with associated local regulations. The new, configurable microservice (preview) enhances the tax determination and calculation capabilities in Dynamics 365 Finance and Dynamics 365 Supply Chain Management. Tax Calculation is fully integrated out of the box, and enables you to:
- Automate and standardize tax determinations and calculations across countries or regions.
- Use a configurable tax determination matrix and flexible calculation designer to configure and execute complex tax determination rules and calculations by using formulae and conditions.
- Simplify compliance maintenance for local tax regulations.
This feature is part of the Tax Calculation capabilities to support defining tax calculation parameters by tax jurisdiction in the Tax Calculation service.
Two matrices will be provided in the Tax Calculation service:
- Tax jurisdiction applicability: This matrix determines the correct tax jurisdiction for the transaction.
- Tax jurisdiction parameters: This matrix determines the correct tax calculation parameters under this jurisdiction.
The following tax calculation parameters are supported in the 2021 release wave 2 plan:
- Deduct cash discount before sales tax calculation.
- Reverse sales tax on cash discount.
- Cash discount is calculated on amount including sales tax – Customer.
- Cash discount is calculated on amount including sales tax – Vendor.