VAT Posting Setup Table in Business Central

Before you get too far this is only for:

• US or Canadian Localization

• You are NOT doing VAT tax or GST in Australia/New Zealand (who goes into VAT)

If you meet those conditions please hear me out.

Under General Ledger Setups >> VAT Posting Setup

Business Central General Ledger Setup

DO NOT put anything here except VAT Calculation Type Sales Tax.

Don’t do it. I see you all doing it.

VAT Posting Setup the correct way

That’s all, that is 100% how it should look. Don’t do Normal Tax.

Do not complete any other VAT table, no VAT Bus. Posting Group, no VAT Prod. Posting Group. No Sales Tax Account or Purchase Tax Account here on the VAT Posting Setup.

VAT Posting Setup table wrong answers only

Additional Setups

Make sure in General Ledger Setup you also have VAT in Use = FALSE

General Ledger Setup VAT In Use

Why?

1) If you’re not using VAT and you setup VAT things you have doomed the user to always have to use VAT things. Think every PO/PI, SO/SI and even journal entry must now contain info for VAT. The info might even be “NOVAT”. Why do this to your client (or to yourself)?

2) You can’t get rid of it. Please if you know how teach me your ways. You are now doomed to have it, use it once it’s yours. Want to change it to Sales Tax later, I think not.

3) Avalara doesn’t work right - and I would imagine other tax software that’s not in house BC. Avalara will sort of work, it will let you transact, but do you want to see the order in Avalara as a Committed document? We’ll that’s too bad, you can’t; nor can you fix BC to change course.

4) Bonus error found after the writing of this: If Normal Tax is select, then on customer card Tax Liable = TRUE, it will not be True on the sales document. Then if you do toggle on, the tax will calculate but it will go to the VAT Ledger Entries vs the Sales Tax Collected report.

So as I go full Sabrina Carpenter on you: I know you have good judgement, I know you have good taste. All I’m asking, Please, please, please don’t prove I’m right. Please, please please don’t use anything but Sales Tax on VAT Posting Setup.