A company has as accounting currency SEK but they are located in UK, so the VAT needs to be reported in GBP, vendors are sending an invoice on SEK currency but specifying what the exact VAT in GBP they are calculating, the problem in D365 is that in this case we don't have an exachange rate, since the transaction currency and the accounting currency is the same; the VAT is getting calcualted using the "default" exachange rate but we should be able to specify the rate we need for the specific transaction.
Comments
This idea is planned in 2023 wave 1 and here is the detail Enable additional exchange rate types for tax currency conversions | Microsoft Learn
Category: Tax
The same issue is relevant for other countries as well (example: Hungary). Please make this feature available globally - not as a localization. Thank you!
Category: Tax
Additional scenario...
following tax scenario was described by on of our international customers and at the moment I see no standard solution for it >> if you have any input - either planned in Tax calculation service or possible in any localization - please give me feedback!?
Scenario:
- Legal entity is located in Austria (Accounting currency = EUR)
- Site in Poland with polish Tax registration (VAT number)
- Sales order (out of polish site) is invoiced >> Transaction currency is USD >> Accounting currency is EUR, Tax currency for posted tax code is PLN
expected result:
>> currency conversion from Transaction currency to Accounting currency USD > EUR should be calculated based on ECB exchange rate
>> currency conversion from Transaction currency to Tax currency USD > PLN should be calculated based on National bank of Poland exchange rate
We have already tested localization for Poland...
https://docs.microsoft.com/en-us/dynamics365/finance/localizations/emea-vat-exchange-rate
.. but the problem in that localization is, that you can choose a different exchange rate type but only for converting Transaction currency to Accounting currency USD > EUR which then leads to an additional tax transaction for the differences in EUR tax amount.
According to our customer they have to report Tax in PLN to local authorities based on direct currency conversion between Accounting currency in USD to Tax currency in PLN accoring to National bank of Poland exchange rate!
Is there any solution / planned solution for the scenario described!?
Category: Tax
VAT exchange rates is available in some countries in eastern europe (poland, hungary and czech republic).
The microsoft documentation says it is available for "europe"... yet only in three countries (documentation recently updated)
https://docs.microsoft.com/en-us/dynamics365/finance/localizations/emea-vat-exchange-rate
Category: Tax
See also posted application idea regarding Norwegian VAT - placed in category Accounts Receivable:
https://experience.dynamics.com/ideas/idea/?ideaid=bc4b8e13-5786-eb11-8ced-0003ff459e3c
This seems to be the same issue. Please consider a change.
Category: Tax
This is very much needed and I'm happy you'll give it serious consideration for the near future!!
Category: Tax
We have more and more case where sales tax code is different from accounting currency and reporting currency.
Customer received vendor invoice foreign currency and tax amount is specified.
With internet business, more and more companied are delocalised and business is handled by headquater.
Then under same company different tax reports will be declared
Scenario A.
Company currency CAD
Sales tax code currency GBP
Vendor sent invoice in USD but tax amount in GBP is specified on the invoice
Customer MUST record for tax declaration amount in GBP (exchange gain.loss may be calculated then between calculated VAT and amount on invoice)
Scenario B.
Company currency CAD
Sales tax code currency GBP
Vendor sent invoice in EUR. Sales tax should be calculated based on UK central bank exchange rate and not Canadian bank exchange rate.
Override option for amount in sales tax code currency should be seen on transaction and editable.
Different if any should be recorded in specific account.
Category: Tax
This topic was raised few times by the Customers
Category: Tax
Administrator on 7/14/2023 10:19:14 AM
This idea is included in 2023 wave 1 (version 10.0.35).
Enable additional exchange rate types for tax currency conversions | Microsoft Learn.
Exchange rate type for sales tax - Finance | Dynamics 365 | Microsoft Learn