How to manage VAT rate changes in Dynamics 365 Business Central
Many countries have turned to value-added tax (VAT) to stimulate their economy in response to the disruption of COVID-19. In addition, several countries are planning economic stimulus packages with VAT rate changes in response to COVID-19. For example, Germany recently lowered standard VAT rates from 19 percent to 16 percent, starting July 1 and continuing until December 31, 2020.
You can configure VAT in Dynamics 365 Business Central for any country on the VAT scheme, including supporting single-rate VAT or differentiated VAT with your desired level of complexity.
Dynamics 365 Business Central offers a flexible setup to manage changes to VAT. For example, there’s a VAT rate change tool to assist with changing VAT rates on master data and documents. The tool allows you to keep running your daily business without being unduly impacted by VAT rate changes.
The rate change tool was recently updated to handle more VAT rate conversion scenarios, and will be available for customers in Dynamics 365 Business Central online before July 1, 2020, and for on-premises customers with the next upcoming cumulative update.
- Read more about managing VAT rate changes and the VAT rate change tool in our documentation.
- Learn more about setting up value-added tax in Dynamics 365 Business Central.