Microsoft Dynamics 365 Tax Calculation
Automate and standardize tax determination and calculation across countries.
Executive Summary
Microsoft Dynamics 365 Tax Calculation is a configurable, cloud-based microservice designed to automate and streamline tax determination and calculation within Dynamics 365 Finance and Supply Chain Management. It serves businesses of all sizes, particularly those operating in multiple jurisdictions, by managing complex tax scenarios, reducing errors, and ensuring compliance with evolving tax laws. The platform offers a flexible tax determination matrix, a calculation designer, and real-time tax rate updates, integrating seamlessly with other Dynamics 365 modules and external systems via APIs.
Use Cases
- Automating sales tax, VAT, and GST calculations for transactions.
- Managing cross-border transactions and intra-EU supplies with complex tax rules.
- Ensuring compliance for businesses operating with multiple tax registration numbers in one legal entity.
- Streamlining tax determination and calculation for project-related financial transactions.
- Integrating with external tax solution providers for enhanced tax rate determination and functionality.
- Configuring specific tax calculation formulas and conditions for unique business requirements.
Features
Visibility
- Audit-Ready Tax Results: Provides consistent, transparent, and auditable tax results for compliance and financial reporting.
- Tax Transaction Details: Displays detailed tax calculation results on transaction pages within Dynamics 365.
- Synchronization Logs: Offers logs to check for errors and ensure data synchronization between the tax calculation service and Dynamics 365.
Intelligence
- Configurable Tax Matrix and Designer: Allows businesses to define and execute complex tax rules and calculations using tailored formulas and conditions.
- Automated Tax Determination: Automatically determines the correct sales tax group, item sales tax group, and tax codes through an enhanced determination mechanism.
- Real-Time Tax Rate Updates: Ensures compliance with the latest tax laws by automatically updating tax rates based on regulatory changes.
- Multi-Jurisdiction Support: Handles complex tax scenarios across multiple countries, regions, and legal entities, including VAT, GST, and sales tax.
Support
- Microsoft Learn Documentation: Extensive online documentation and guides are available for setup, configuration, and troubleshooting.
- Community Support: Access to Microsoft Dynamics 365 community forums and Viva Engage groups for peer support and discussions.
- Specialist Consulting Services: Partnership with Microsoft Dynamics 365 consulting services for implementation and customization assistance.
Technical Specifications
- Architecture
- Cloud-native SaaS, Microservice, Multi-tenant
- Deployment
- Cloud/SaaS
- Authentication
- SSO, Azure AD, token-based communication with client ID and secret
- API Available
- Yes
- MCP Server
- No
Infrastructure
- Azure
Integrations
- Dynamics 365 Finance
- Dynamics 365 Business Central
- Power Platform
Security & Compliance
Certifications: ISO 27001, SOC 2 Type II, GDPR
Encryption: AES-256 at rest (general D365), TLS 1.2+ in transit, encrypted connection via Azure Key Vault for external integrations.
Pricing
- Model
- Subscription-based (part of Dynamics 365 Finance licensing)
- Starting Price
- Contact sales for specific Dynamics 365 Finance and add-on pricing
- Target Customer
- Mid-market to Enterprise
- Contract Type
- Annual, Multi-year discounts available
- Free Trial
- Yes, Custom demo or trial for Dynamics 365 Finance (credit card required)
About Microsoft
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