Tax Calculation Service
Transcript of Tax Calculation Service
1
Tax Calculation Service
Suzhen Zheng – Principal Engineering Manager
Maple Nan – Senior Engineering Lead
Eric Wang – Senior PM Lead
Ekaterina Podkolzina – Senior Program Manager
Kai Liang – Senior Program Manager
Severin Bock - R&D Solution Architect
Veselina Eneva - Senior Program Manager
Adeel Edhi - Senior R&D Solution Architect
2
Agenda • Overview
• Technical Architecture
• Demo 1: EU intra community supply/acquisition with
multiple VAT registrations
• Demo 2: EU VAT on margin
• How to build extension in Tax Calculation Service
3
What is Tax Calculation Service
Overview
Tax Calculation Service is a standalone microservice built on top of Microsoft Azure
platform to enhance tax determination and calculation capabilities of Dynamics 365
applications with a more flexible and fully configurable solution.
It integrates with Dynamics 365 Finance and Supply Chain Management as of now and
plans to integrate with more 1st and 3rd party applications in the future.
See https://aka.ms/taxcalculation for more information
Search “Tax Calculation Service (Preview)” in Yammer Group
How does it work with existing tax engine
Tax Calculation Service is fully backward compatibility with existing tax engine in F&O. It’s
controlled as a new feature in Feature Management workspace and can be further enabled at
more granular level:
• Enable by legal entity
• Enable by business process
Timeline
• Under Public Preview now
• Planning for GA
1st/3rd party applications Tax Calculation Service
Tax Setup
Tax Determination
Tax Calculation
API request
API return
Business values
• Automate and standardize tax determinations and calculations across countries or
regions.
• Utilize a configurable tax determination matrix and flexible calculation designer to
configure and execute complex tax determination rules and calculations using formulae
and conditions.
• Simplify compliance maintenance for local tax regulations.
4
Key Capabilities
• Configures and determines tax codes, rates and deductibility based on any field of
taxable document (orders, invoices, etc.), e.g., shipping to/from location addresses,
item category, nature of counterparty, etc.
• Configures complex tax determination matrix
• Cascade matrices and parallel matrices
Enhanced tax determination
• Configures and executes complex tax calculation formulas and conditions required
by tax regulations, e.g., tax calculation by margin, tax on tax calculation with multiple tax
codes, etc.
• Supports configurable tax data model
Enhanced tax calculation
• Supports multiple tax registration numbers under single party (legal entity,
customer, vendor) for various scenarios: transfer pricing, consignment warehouse, low
risk distributor model, etc.
• Configurable determination of correct tax registration number for legal entity and its
counterparty in sales, purchase and transfer orders.
Multiple tax registration numbers
• Support EU regulation "Exempt intra-EU supply according to article 138 of the Directive
2006/112/EC“ for Intra-EU Supply of goods
Tax on transfer order
*Upcoming Tech Talk: VAT reporting for multiple tax registrations in single legal entity (Sep 29th)
5
Availability
• Asia Pacific
• Australia
• Canada
• North Europe/West Europe
• Japan
• United Kingdom
• United States
Azure geography
F&O apps legal entity country/region
10.0.21
• Austria
• Belgium
• Denmark
• Estonia
• Finland
• France
• Germany
• Hungary
• Iceland
• Italy
• Latvia
• Lithuania
• Netherlands
• Norway
• Poland
• Sweden
• Switzerland
• United Kingdom
• United States
10.0.22
• Australia
• Bahrain
• Canada
• Egypt
• Hong Kong SAR
• Kuwait
• New Zealand
• Oman
• Qatar
• Saudi Arabic
• South Africa
• United Arab Emirates
Planned
• Czech Republic
• Japan
• Malaysia
• Mexico
• Singapore
• Spain
• Thailand
• Indonesia
Not supported
• Brazil
• China
• India
• Russia
More geographies are coming, and if there is any customer
needs for other geography, please contact Microsoft support
Sales
• Sales quotation
• Sales order
• Confirmation
• Picking list
• Packing slip
• Sales invoice
• Credit note
• Return order
• Header charge
• Line charge
Use Cases
Purchase
• Purchase order
• Confirmation
• Receipts list
• Product receipt
• Purchase invoice
• Header charge
• Line charge
• Credit note
• Return order
• Purchase requisition
• Request for quotation
Inventory
• Transfer order – ship
• Transfer order – receive
2021 wave 2
• Free Text Invoice
• General Journal
• Payment Journal
Beyond
• Invoice register/approval/pool
• Project invoice
• Expense management
Supported in 10.0.21
Planned
• Budget
• …
Integration with F&O apps transaction types
• Transfer price model/Limited risk distributor
• EU intra community supply and acquisition with multiple VAT registrations
• EU triangulation transaction
• EU VAT on margin
• EU distance selling
• US origin-based and destination-based sales tax
• Tax deductibility by usage of the goods/service
6
Technical Architecture
RestAPITaxable document
Tax documentConfigurations, features
D365 Tax Service(Customer selected geo)
No storage
D365 Tax Service(Customer selected geo)
No storage
Dynamics 365 Finance(Customer selected geo)
Dynamics 365 Supply Chain Management(Customer selected geo)
Regulatory Configuration Service(Customer selected geo)
Global repo(Configurations, features)
7
Scenario: EU Intra community supply/acquisition with multiple VAT registration
Legal entityBelgium
Tax RegistrationBelgium
Tax RegistrationFrance
WarehouseBelgium
WarehouseFrance
Organization structure Business Process
VendorFrance
VendorEU
WarehouseFrance
Purchase order• French VAT ID• French domestic VAT rate
Purchase order• French VAT ID• French reverse charge
WarehouseBelgium
Transfer order
Shipment:• French VAT ID• French exempt tax
Receiving:• Belgium VAT ID• Belgium reverse chargeCustomer
Belgium
CustomerEU
Sales order• Belgium VAT ID• Belgium domestic VAT rate
Sales order• Belgium VAT ID• Belgium exempt tax
8
9
Scenario: EU VAT on Margin
Resale of used vehicles in EU
ResellerFrance
IndividualFrance
BuyerFrance
Purchase price: € 2000 Sales price: € 3000 (including tax)
VAT rate @ 20%Tax base: (€ 3000 - € 2000) / 120% = € 833.33
Tax amount: €833.33 * 20% = € 166.67
10
Scenario: EU VAT on Margin
11
Tax Integration Design
Setting Retrieval Data Retrieval Calculation Error Handling VAT ID HandlingCurrency Exchange
Data Persistence
Transaction integration point
Tax Calculation Service Integration point
TaxIntegrationFascade::calculate()
• TaxPuch::calculateTax()
• TaxPuch::calcUsingTaxIntegration()
• TaxIntegrationFacade::calculate()
12
Tax Integration Design
• TaxIntegrationDocumentObject
• TaxIntegrationLineObject
• TaxIntegrationTaxLineObject
13
Build the extension
Add data fields in tax configurations
Add data fields in the tax integration by using extension
Support a new transaction (to be published)
© Copyright Microsoft Corporation. All rights reserved.
Q&A