Value-Added Tax (VAT) is a tax on consumption that is paid by the end consumer. VAT is calculated on sales and purchases and reported to the tax authorities periodically.
The general concepts of VAT are same in all the countries where VAT applies. Statement and VAT rates differ from country to country. This book is based on the Dynamics NAV 2013 worldwide (W1) database. Most Dynamics NAV country versions include localizations on VAT.
In Dynamics NAV, VAT is calculated on sales and purchases invoices and credit memos. When the documents are posted, new VAT entries are created that will be used later on to report VAT to the authorities.
VAT is calculated based on the combination of VAT Business Posting Groups (customers and ...