Increasingly, companies with a web presence, selling products to customers in multiple countries are required to collect GST/VAT/C-Tax (name your term) on behalf of the destination country. For the most part, the Tax module in D365 is flexible enough to supports this. However, one gap we have encountered working with a few of our clients, relates to the tax treatment of different products in different countries.

As an example, in Australia sunscreen is tax-free, whereas in New Zealand it is taxable. If we are selling sunscreen to customers in both countries from the same legal entity, this means we would need to create two products, with different default item tax groups. This becomes a headache when dealing with thousands of SKUs.

To me, the ideal solution seems to be have sales country overrides on released products. We could supplement the current default sales Item tax group field, with a separate table to store customer-country-specific defaults where required. When a sales order line is created, if an item tax group exists for the customer's country, use that, otherwise copy the usual default to the sales line. All standard logic would apply after that.