This post is part of the New Functionality In Microsoft Dynamics 365 Business Central 2023 Wave 1 series in which I am taking a look at the new functionality introduced in Microsoft Dynamics 365 Business Central 2023 Wave 1.
The first of the new functionality in the Legislation section is Non-Deductible, Partly Deductible Vat Expands Functionality.
Users in all relevant regions have improved VAT functionality with non-deductible and partly deductible VAT enabled.
Enabled for: Users, automatically
Public Preview: Mar 2023
General Availability: Apr 2023
Feature Details
Business Central lets businesses calculate deductible and non-deductible VAT amounts. You can configure VAT so that it isn’t deducted for purchases under certain conditions:
- The type of goods or services purchased. VAT is fully or partially non-deductible by the provision of the law on goods.
- Partially deductible prorated VAT. VAT is prorated according to the ratio between sales operations for which VAT is owed and all operations performed. VAT exceeding this ratio can’t be deducted.
Configure deductions in VAT (percentage and G/L account) on the VAT Posting Setup page. You can configure full or partial deductions for combinations of VAT posting groups.
Before you post a document, the details are available in statistics. When you post a purchase document, the results are available on the G/L entries and VAT entries. Non-deductible VAT also works with Reverse Charge VAT and Deferrals.
My Opinion
New Functionality In Microsoft Dynamics 365 Business Central 2023 Wave 1
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