In Business Central, captions indicate “VAT” instead of “Tax” even when the “VAT in Use” is off (so, when sales tax is used). The captions are tied to the language setting instead of the region setting (or VAT in Use field of the General Ledger Setup).

The English United States (ENU) language will display “VAT” and not “Tax” (General Ledger Setup and all other application fields related to sales tax or value-added tax). This is problematic for North America as VAT is not in use, sales tax is and the captions should reflect this.

The change of language from English Canada to English United States updates the captions from “Tax” (English Canada) to “VAT” (English United States). Also, French Canada displays “TVA” which is also incorrect as it should say “Taxe”.

Summary:
• Behavior can be reproduced in demo and customer environments (Canadian and U.S.).
• VAT is NOT in use (General Ledger Setup field is set to No)

Captions / Region / Language
Tax / ENU / ENC
Tax / ENC / ENC
VAT / ENU / ENU
VAT / ENC / ENU
TVA / ENC / FRC
TVA / ENU / FRC
TVA / FRC / FRC

The workaround is to set BC to use English Canada (ENC) as the default language for all profiles/users. Then the “Tax” caption is properly displayed.

The permanent solution would be to tie the captions to the VAT in Use field from the General Ledger Setup so the proper captions are displayed based on sales tax or value-added tax use.