As of today, D365FO supports VAT group declarations through Electronic messages only by using a consolidated report based on posted sales tax payment transactions collected across multiple legal entities.

It is important to note that the VAT Declaration Excel report is typically used pre-settlement as a preview or control mechanism, rather than for the final submission. However, there is a practical need for users to also generate a VAT Declaration Excel for VAT groups.

A suitable approach would be to extend the VAT Declaration Excel with an additional User Input Parameter (UIP) for VAT group. When this parameter is activated, the user can decide whether the VAT group logic should be applied.

This would enable two clear scenarios:

• Pre-settlement:
• Set UIP = No → Generate the VAT Declaration Excel per legal entity (current behavior).
• Post-settlement:
• Set UIP = Yes → Generate the VAT Declaration Excel consolidated across all legal entities included in the VAT group.

Take it into consideration that it can be up to user to set UIP to Yes or No based on requirement.

This approach preserves the existing control and reconciliation use case while also enabling consolidated VAT group reporting in Excel, aligned with post-settlement requirements.