Tax Calculation service – supporting multiple VAT IDs


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Enabled for Public preview General availability
Users by admins, makers, or analysts Apr 16, 2021 Oct 8, 2021

Business value

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.

Feature details

This feature is part of the Tax Calculation capabilities to support multiple VAT ID determination for a single legal entity and its counterparties. The feature supports the following capabilities:

  • Maintain multiple VAT IDs under one single legal entity.
  • Maintain multiple VAT IDs under one single customer or vendor.
  • Automatically determine the correct legal entity VAT ID on transactions.
  • Automatically determine the correct counterparty VAT ID on transactions.

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See also

Multiple VAT registration numbers (docs)