VAT Rate Changes

VAT Posting Setup Rate

If you are dealing solely in the industries effected, or you have a small number of transactions, the simplest way to manage the VAT rate changes is to change the rate on that in the VAT Posting Setup. This would avoid changing the VAT Posting Group on items and G/L codes.

It must be noted that care must be taken close to the change-over dates. All possible Sales and Purchase orders & invoices and G/L journals involving VAT should be posted by the cut-off, and any remaining orders refreshed to the new rates to avoid “Full VAT” credits or invoices to correct them.  It would be worth creating an additional setup for “old standard” for any exceptions.

Note that any new combinations created in VAT Posting Setup should be reflected in new lines within the VAT Statement, and that Business Central does not allow the same VAT Identifier with a different VAT % in a single VAT Business Posting Group.

New Accounts for Posting Groups

If you have a more complex requirement, such as a large number of open documents or you need separate G/L Accounts, a more complex requirements. For this, Microsoft have provided a comprehensive rate change tool which can be found by searching for “VAT rate Change Setup” in Business Central:

In Dynamics NAV, this can be found under Financial Management/Setup/Vat Rate Change:

For an in-depth guide to using the Vat Rate Change too, check out the guide from Microsoft.

Vat Rate Change Setup Guide

Need more help or advice on VAT setup?

If you need more help or want some training on VAT setup, our team of experts are here to help. We have a number of accountants on our team, and we have over 300 years of collective experience of Microsoft Dynamics NAV and Dynamics 365 Business Central.

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Jesse Lawrence

Jesse is our marketing manager, keeping an eye on the latest news in the market as well as having worked on the GDPR legislation.