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As I can see in the Belgian Localization it is possible to set up Non-deductiable VAT percentage on G/L accounts.

This should be possible to do so in the Danish localization and I would think that this could be useful in al european localizations.

It should also be possible in General Journal, Purchase Invoice / Credit Memo to set up Non-deductiable VAT Percentage.
STATUS DETAILS
Completed
Ideas Administrator

Thank you for your feedback. We released this feature as the 'Non-deductible VAT' functionality in 2023 release wave 1 (22.1).
Please refer to the following link for more information: https://learn.microsoft.com/en-us/dynamics365/release-plan/2023wave1/smb/dynamics365-business-central/non-deductible-partly-deductible-vat-expands-functionality

Your help was greatly appreciated,

Aleksandar Totovic
PM, Microsoft

Comments

D

This is very much needed. But since VAT in BC is handled by the combination of "VAT Business Posting Group" and "VAT Product Posting Group", this setup should not be made on G/L accounts, but should be build in the VAT Posting Setup instead.

Category: Geographies and Localization

D

+1 for this in Spanish localization too!

Category: Geographies and Localization

D

Hi,
any news in that topic?
Do you have any idea how to post such transaction without mentioned functionality?
Is it possible somehow?

best regards
- Radoslaw

Category: Geographies and Localization

D

This is a needed function for Spain localization too. It could be managed at VAT posting configuration and should add a field in the table Vat Entry to differentiate the Deductible VAT and the VAT Amount.

This new function affects to SII process too. In invoice lines, The VAT Amount should be shown. In field Deductible VAT, the Deductible VAT amount should be shown.

Category: Geographies and Localization

D

We have this feature in our CZ localization as well.
Here is our scenario:

The scenario for Non-deductible VAT in CZ

Setup:
Setup is done on the VAT Posting Setup, where we can set up on VAT posting group combination Non-deductible VAT. For example for VAT business posting group DOMESTIC and VAT product posting group 21SK combination is setup Non-deductible VAT = 93.

Scenario:
Amount of invoice = 1210 CZK
Base Amount = 1000 CZK
VAT Amount = 210 CZK
VAT= 21%
ND VAT = 93% (this means, that only 7% of the VAT Amount is deductible and 93% is non-deductible)

VAT Entry :
VAT Entry Base = 1195,30 (1000 + (210 x 0,93))
VAT Entry Amount = 14,70 (210 x 0,07)
VAT Entry Base (Non-deductible) = 930
VAT Entry Amount (Non-deductible) = 195,30
G/L Entry:
G/L Amount regarding VAT = 14,70
G/L Amount regarding Purchase Account = 1195,30
G/L Amount regarding Vendor = 1210

VAT Statement:
In the VAT Statement must be the same amount as on purchase invoice, therefore we need to use the help lines in our settings to add or subtract the final amount.
1. 1 st help line for VAT Base = VAT Entry VAT Base = 1195,30
2. 2 nd help line for VAT Base = VAT Entry Amount (Non-deductible) = 195,30
3. VAT Base = VAT Base (1 help line) – VAT Amount (Non-deductible) (2 help line) = 1195,30 – 195,30 = 1000 (reported in VAT Statement)
4. 1 st help line for VAT Amount = VAT Entry Amount = 14,70
5. 2 nd help line for VAT Amount = VAT Amount (Non-deductible) = 195,30
6. VAT Amount = VAT Amount + VAT Amount (Non-deductible) = 14,70 + 195,30 = 210 (reported in VAT Statement)

Category: Geographies and Localization

D

Also very desired functionality in Slovenia. We need non-deductible % VAT not only for G/L Account
but also for Items, Fixed assets...

Best Regards,
Branko Sodja

Category: Geographies and Localization

D

Hi Alexander,

Thank you very much for your patience. I hope the detail I’m sending is enough. If not please let me know.

Regarding the Country Code it’s “PT” or is Microsoft looking for a specific code?

Regarding the detail, I’m sending a scenario that might help contextualize things.
The Goal of the functionality:
The ND VAT is a functionality that restricts the amount of VAT that can be deducted in the VAT statement

Setup:
Setup is done on the VAT Posting Setup where we can setup ND VAT %

Scenario:
Amount of invoice: 123 €
Base Amount= 100€
VAT% = 23
ND VAT% = 10%

In this scenario only 13% (23%-10%) is deductible so:

* VAT Entry
* VAT Entry Base Amount = 100€.
* VAT Entry Amount = 13€.
* VAT % = 13%
* ND VAT% = 10%
* G/L Entry
* G/L Amount regarding VAT = 13€
* G/L Amount regarding Purchase Account = 110€
* G/L Amount regarding Vendor = 123€.

For this to happen the code (which is legacy code from Microsoft itself from before NAV 2013) transfers this information to the temporary document Tables (Sales Line and Purchase Line) and during posting transfers this information to History Tables.

The possibilities to address this from a code perspective so far involves the following:

* Let MSFT Code Run and then force change data if needed to the desired output;
* Since the changes are located in more than 200 places it’s a crazy job for a small team;
* Also it’s not very pretty;
* Completely refactor the functionality;

We would like help in understanding if we really need to completely refactor the code or is there a way to do this adjusting some of the existing code.

We realize that the Code example we sent before was for the SalesLine part, but the truth is that it’s mainly used for the Purchases (The SalesLine code is legacy code that should have been removed).

Category: Geographies and Localization

D

At the moment the main problem concerns Non-Deductible VAT.
Currently the code is embedded in the standard code. This means that in every particular place where VAT is calculated, ND. VAT is also being calculated.
The following examples show the scenario.
Sample1: tab 36 – OnValidate from Filed Prices Including VAT
IF NOT RecalculatePrice THEN BEGIN
...
VatFactor += SalesLine."ND %" / 100; //soft,n
--These recalculations on OnValidate fields.. would it be feasible by recreating the code on OnAfterValidate triggers?
Sample2: Cod 80 - Local Function DivideAmount
LOCAL DivideAmount...
....
BEGIN
"VAT %" := TempVATAmountLine."VAT %"
"ND %" := TempVatAmountLine. "ND %";
...
Samples3: SumSalesLines2 function (also in Cod80)
DivideAmount...
BEGIN
TotalSalesLine."VAT %" := SalesLine."VAT %";
TotalSalesLine."ND %" := SalesLine."ND %";
Note that there are 3 examples in this email but the whole scenario obliges us to make changes in about 200 different places.
What would be your suggestion for this cases?


AlexanderYakunin: Please describe you problem, I assume if you don't use ND VAT it will be zero. And let us know you country code please.

Category: Geographies and Localization

D

We have the same case in Poland. We did not include this into our Starter Pack app but we need to consider this functionality to our next version. It will be very helpful to have it in W1. PLease find below short introduction to this functionality:
General Information
In some cases, it is not possible to deduct the full 100% purchase VAT amount, which means that only a part of the VAT amount can be included in the VAT register and the remaining part should be added to the purchase amount and posted as costs. For item or fixed asset purchases, non-deductible part of the VAT amount is added to the purchase value of an item or fixed asset and it is posted as a part of the purchase cost.
Polish Functionality for Microsoft Dynamics® NAV 2018 has been enhanced with this feature to enable users to:
• Set up the partial deduction of a calculated VAT amount;
• Post a purchase transaction including the calculated VAT amount which is partially deductible;
• Increase the acquisition cost of items and fixed assets by purchase VAT which was not deducted.

In case of any questions please let me know.
Regards
Wojciech

Category: Geographies and Localization

D

Hi,
It is also important issue in France which is using non-deductible % VAT on GL account
but also for Fixed assets !
And in France but I suppose in other UE countries :
- we can have several different % by company
- and for each one preview % for all year and the final % is only knowing at the end of year
- then we need to adjust with all such transaction for this year to apply global adjustment for the difference.
Available for more information.
Laurent

Category: Geographies and Localization

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