Manage VAT changes in Business Central
Global health and financial crisis
The ongoing corona pandemic has caused a serious economic situation and in many countries this year's GDP (Gross Domestic Product) decline is expected to be even greater than during the 2007-2009 financial crisis. Due to the negative impact on the economy, many of the world's governments have introduced a number of temporary stimulus packages, which among other thinks affects the handling of VAT (value added tax). In Denmark, for example, the Danish Parliament has adopted changes in relation to the deadline for declaring and paying VAT.
The corona pandemic affects the handling of VAT
Many other countries have also looked at VAT to stimulate their respective economies during the corona pandemic. Many of the planned economic stimulus packages include changes in the VAT rate. For exampel, with effect from 1 July, Germany has reduced the standard VAT rates from 19 per cent to 16 per cent and will continue until 31 December 2020.
VAT handling in Business Central
In Business Central , you can configure VAT for each country on the VAT scheme, including one-rate or differentiated VAT based on your desired level of complexity.
Business Central has a flexible and simple setup for configuring and managing VAT changes and enables you to continue operating your daily business without being unduly affected by the new VAT rate changes. For example, in the solution there is a tool for changing the VAT rate. This tool is used to change the VAT rates on your master data and documents.
Recent update of the rate change tool
Microsoft has recently updated the rate change tool in Business Central to handle even more VAT conversion scenarios. The update for the tool will be available to Business Central online users by July 1, 2020 and to Business Central on-premise customers with the next cumulative update.