The reduction in value added tax decided by the government coalition as part of its economic stimulus and crisis management package is limited in time to six months.
According to the current status, the VAT will therefore change again with the turn of the year 2020/2021 and from January 1, 2021, the previous VAT rates of 19% and 7% will apply again.
As a Microsoft Dynamics user, you are faced with the task of reapplying the adjustments made in your Dynamics system in June in order to implement the increase in VAT rates in your business solution.
During the changes in the summer, you will have noticed that the more complex your Dynamics system, the higher your time and manpower requirements will be accordingly.
For Microsoft Dynamics 365 Business Central and starting with the Dynamics NAV 2013 version, the same function for changing the VAT rates in the standard system is still available from Microsoft.
However, processes such as partial deliveries, service contracts, advance payments or special features such as interfaces to subsystems or WebShops require an individual handling.
For Microsoft Dynamics versions previous to NAV 2013, no functionality for changing VAT rates is provided by Microsoft, even with an ongoing enhancement plan. In this case, the development of an individual solution is required.
Our solution team for Finance and Controlling will be happy to support and advise you in the conversion of VAT rates in your Dynamics system. Contact us.