About conditional sales tax [AX 2012]

Updated: November 7, 2011

Applies To: Microsoft Dynamics AX 2012 R3, Microsoft Dynamics AX 2012 R2, Microsoft Dynamics AX 2012 Feature Pack, Microsoft Dynamics AX 2012

Conditional sales tax is a sales tax that is paid proportionally to the actual amount that is paid on an invoice. Conversely, standard sales tax is calculated at invoicing time.

Conditional sales tax must be paid to the sales tax authority when the payment is posted, not when the invoice is posted. When the invoice is posted, the transaction must be reported on the sales tax book report. However, the transaction must be excluded from the sales tax payment report.

If you select the Conditional sales tax check box in the General ledger parameters form, no sales tax can be deducted until you have paid the invoice. This is a legal requirement in some countries/regions.

NoteNote

When you select the Conditional sales tax check box, you must set up sales tax codes and sales tax groups, and also create ledger posting groups, to support the functionality.

For more information, see Set up conditional sales taxes.

You settle sales taxes each month. On June 15, you create a customer invoice of 10,000, plus sales tax.

  • The sales tax is 25 percent, or 2,500.

  • The invoice payment is due July 30.

You typically would have to settle and pay 2,500 to the tax authority when the invoice is posted in June, even though you have not received the payment from the customer.

However, if you are using a conditional sales tax, you settle with the tax authority when you receive the payment from the customer on July 30.


Announcements: To see known issues and recent fixes, use Issue search in Microsoft Dynamics Lifecycle Services (LCS).

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