The Advanced Sales Tax Framework (ASX) for Microsoft Dynamics 365 Finance and Operations

by Quantum Omega EOOD

ASX allows for multiple tax compliance- and local business practice requirements around the world

Operating across multiple countries necessitates staying abreast of local laws and regulations, a task that is both resource-intensive and challenging.

Each country and region has its own set of ever-evolving regulations, rendering compliance an ongoing task that demands vigilant attention.

To effectively manage complex global operations from a tax perspective, organizations need a solution that aligns with their worldwide footprint and reflects their unique corporate structure. Simultaneously, their sales tax framework must address today's intricate tax complexities, enabling the finance team to maintain business expertise across all current territories and adapt to future expansion and evolving tax regulations.

Traditionally, organizations implementing an ERP solution often need an external tax engine for tax determination and calculation, or they may settle for a less-than-ideal solution.

The Advanced Sales Tax Framework, serving as an internal tax engine, significantly augments the standard sales tax capabilities within Dynamics 365. This enhancement offers organizations greater assurance in the accuracy of tax determinations.

  • Origin- and Destination-based Taxation: Sales tax is determined by the seller's delivery location and the buyer's receipt location, as dictated by international sales tax calculation rules.
  • Purpose-based Sales Tax Deductibility: The deductibility of the applied sales tax amount is calculated automatically.
  • Variable Rates, Exemptions, and Thresholds: Depending on the type of goods or services sold or purchased, variable rates, exemptions, and thresholds may be applied.
  • Simplicity and Transparency: The ASX calculation method is straightforward and transparent, thus avoiding confusion for both businesses and consumers.
  • Ease of Administration: The ASX system is simple for businesses to administer and enforce, with clear guidelines, reporting requirements, and collection mechanisms.

The Advanced Sales Tax Framework (ASX) for Microsoft Dynamics 365 offers numerous benefits for businesses, tax authorities, and consumers:
  • It enhances efficiency and accuracy by leveraging technology, automation, and real-time data to streamline tax collection, thereby reducing errors and administrative compliance burdens.
  • ASX ensures adherence to complex and evolving tax laws, mitigating the risk of non-compliance and penalties.
  • It simplifies cross-border transactions by managing international tax regulations and is well-equipped for the intricacies of digital and e-commerce transactions across multiple jurisdictions.
  • ASX's real-time global sales tax calculation capabilities for Project Transactions improve transparency and enforcement.
  • It adapts to various business models, from subscription services to traditional retail, ensuring precise tax calculations.
  • By integrating with CRM systems, ASX improves customer experience by providing clear tax information at the point of sale, minimizing consumer confusion.
  • ASX reduces the risk of compliance errors and tax calculation inaccuracies by automating processes and minimizing manual intervention.

At a glance