Date Effective Tax Rates allows you to record various different rates for a Tax Detail, and the date range that these rates are effective. This overrides the default Tax Rate entered in the Tax Detail set up window. For European Dynamics GP users this is a god send with the various EU wide changes in VAT rates.
Date Effective Tax Rates works with the SOP, POP, RM and PM modules in Dynamics GP. Once it is installed (it’s an option available from the Additional Products / Features menu when you install GP 2010 R2) it can be accessed through Tools >> Setup >> Company >> Company >> Options >> Additional >> Date Effective Tax Rates Setup. In this window you can enable the feature for a specific company.
Once enabled a user can set up various rates for each Tax Detail ID, and specify from and to dates for each rate. (Tools >> Setup >> Company >> Tax Details >> Additional >> Date Effective Tax). Remember, rates entered here take precedence over the rate entered in the Tax Detail set up window.
A cool part of this functionality is that you can update all saved transactions after you have set up date sensitive rates. (Tools >> Routines >> Company >> Regenerate Taxes). So once set up, all those unposted invoices etc. can be mass updated based on their dates.
One small issue is when you need to seperately report standard rate VAT at different percentages. Shouldn’t be an issue with rate changes effective from 1st January – since the change is at the start of a fiscal year. But if the rates changed mid reporting cycle and your local VAT authority required transactions at the old and new rates reported seperately, it would probably be best to create a new Tax Detail for the new rate.