Posted by: IS | January 8, 2011

How to handle VAT rate changes in Dynamics GP


Some countries in Europe updated their sales tax (VAT) rates from 1st January 2011.  The UK ( a member of the EU) increased their standard rates to 20%. Switzerland (not amember of the EU) increased their standard rates to 8%.

When VAT rates change you have a few choices when updating Dynamics GP:

  1. Create a brand new Tax Detail ID in Dynamics GP, add this to a brand new Tax Schedule ID, and update all your standard rate customers’ and suppliers’ cards with this new VAT Schedule. You can roll down these changes through SQL – Details below…
  2. Create a brand new Tax Detail ID, add it to your existing Tax Schedule ID, and then remove the old rate Tax Detail ID.
  3. Change the Tax percentage in your existing Tax Detail ID.

No. 3 is by far the easiest. However if you need to detail the old and new transactions seperately for your VAT return, options 1 or 2 might be better. This situation arose in Ireland and the UK over the last two years when VAT rates were changed in the middle of reporting periods. The Dynamics GP VAT Daybooks functionality works off the Tax Detail ID – so changing the rate for your existing Tax Detail ID will mean old and new rated transactions will be reported in the same ‘box’.

To roll down the new Tax Schedules to customers and suppliers in Dynamics GP:  (in the queries below, replace NEW with your new tax schedule ID, and OLD with your old ID).

  • Update RM00101 set TAXSCHID = ‘NEW’ where TAXSCHED = ‘OLD’  (This will update Debtors as if you had manually opened the Debtor card and changed ther default TAX schedule ID to the new one).
  • Update RM00102 set TAXSCHID = ‘NEW’ where TAXSCHED = ‘OLD’  (This will update all Address records – so if your debtor has multiple address records, any that use the Old Tax Schedule ID will be updated to the new one).

For Creditors the queries are:

  • Update PM00200 set TAXSCHID = ‘NEW’ where TAXSCHED = ‘OLD’   (Creditor Master)
  • Update PM00300 set TAXSCHID = ‘NEW’ where TAXSCHED = ‘OLD’    (Creditor Address Master)

Responses

  1. You might find these articles useful to:

    http://blogs.msdn.com/b/developingfordynamicsgp/archive/2011/01/05/date-effective-tax-feature-for-microsoft-dynamics-gp-2010.aspx

    http://blogs.msdn.com/b/developingfordynamicsgp/archive/2010/09/21/changing-sop-tax-rates-using-the-support-debugging-tool.aspx

    David
    http://blogs.msdn.com/DevelopingForDynamicsGP/


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