1

FINEX

The Advanced Sales

Tax Framework

This document provides general

information about the Advanced Sales
Tax Framework for Microsoft Dynamics
D365

Microsoft
Partner Network

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 Content

Overview | Global sales Tax Challenges 01

Introducing the Advanced Sales Tax Framework 02

Scaleable, transparent and easy to use 03

Global Financial Excellence, all the time 05

Localizations 05

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01
THE CORPORATE BROCHURE

Overview
Global Sales Tax Challenges
Staying on top of local laws and regulations in several countries is resource-intensive and
challenging. Not only do individual countries and regions have their own regulations, but
these rules are continuously changing, making compliance a perpetual task that requires
close attention. Technology-enabled digital transformation is at the forefront of the tools
available to finance leaders who must do more with less.

To effectively manage complex global operations like these from a tax perspective,
organizations require a solution with the flexibility to scale to support its worldwide
footprint and mirror its distinctive corporate structure. At the same time, a proper
functioning sales tax framework has to handle today’s unique tax complexities so that the
in-house finance team can easily maintain business expertise to operate in all the
territories they’re currently in today and allow for future expansion and ever-changing tax
regulations.

Traditionally, organizations selecting or implementing an enterprise resource planning

(ERP) solution in these situations often require an external tax engine to perform tax
determination and calculation or frequently end up with a sub-optimal determination
solution. The features and benefits of the Advanced Sales Tax Framework, by greatly
enhancing the "out of the box" sales tax functionality included in Dynamics 365 Finance,
give many organizations assurance over the tax determination that could be delivered:

Origin- and Destination-based Taxation:

Sales tax is based on the delivery-location of the seller and on the receipt-location of the
buyer as international sales tax calculation rules stipulate.

Variable Rates, Exemptions and Thresholds:

Variable rates may be applied based on the type of goods or services being sold/purchased.
Additionally, many jurisdictions have exemptions for certain types of goods or services.
Thresholds may also be established, below which businesses are not required to collect
and remit sales tax.

Simplicity and Transparency:

ASX calculation transparency is easy to use and understand, therefore preventing
confusion for both businesses and consumers. Whereas complicated tax systems may
result in compliance and maintenance challenges.

Ease of Administration:
ASX is easy for businesses to administer and enforce. This includes clear guidelines,
reporting requirements, and collection mechanisms..

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 02

Introducing the Advanced

Sales Tax Framework
Using The Advanced Sales Tax Framework from Quantum Omega, for Microsoft Dynamics 365
Finance can provide several benefits for businesses, tax authorities, and consumers.

Efficiency and Accuracy:

The Advanced Sales Tax Framework (ASX) leverages technology, automation, and real-time data to streamline
tax collection processes. This helps businesses avoid errors in tax calculations and reduces the administrative
burden of compliance.

Compliance with Complex Tax Laws:

Tax laws can be complex and subject to frequent changes. ASX helps businesses stay compliant with
evolving tax regulations, reducing the risk of non-compliance and associated penalties.

Cross-Border Transactions:
For businesses engaged in cross-border transactions, ASX handles the complexities of international tax
regulations.

Digital Commerce and E-Commerce:

ASX is equipped to handle the challenges posed by digital and e-commerce transactions, including those
involving multiple jurisdictions, online marketplaces, and diverse product types.

Project Transactions:
ASX offers real-time Project Transactions (Global) Sales Tax calculation capabilities, providing
businesses with up-to-date information on sales and tax used in Project Transactions. This enhances overall
transparency and allows for more effective monitoring and enforcement.

Adaptability to Business Models:

Businesses often have diverse models, including subscription services, digital goods, and traditional retail. ASX
adapts to different business models, ensuring accurate tax calculations for a wide range of products and
services.

Customer Experience:
ASX enhances the customer experience by providing clear and accurate tax information at the point of sale.
This reduces confusion for consumers and contributes to a positive purchasing experience.

Risk Mitigation:
Compliance errors and inaccuracies in tax calculations can pose significant risks for businesses. ASX helps
mitigate these risks by automating processes, reducing manual intervention, and providing reliable calculations.

Audit Trail and Documentation:

ASX maintains detailed audit trails and documentation, making it easier for businesses to demonstrate
compliance during audits. This can save time and resources in the event of a tax audit.

Integration with Accounting Systems:

Integration with D365 accounting systems is a standard feature of ASX. This integration improves overall
financial management and ensures that tax data is seamlessly incorporated into broader financial reporting.

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6 THE CORPORATE BROCHURE

Scaleable, transparent and easy to use

If you already use Dynamics 365 finance, you may have noticed that the Standard Tax Calculation functionality is limited and not
able to automate complex tax scenarios, such as:
 Transfer price model and limited risk distributor
 Consignment warehouses with multiple VAT registrations
 EU triangulation transactions
 EU VAT on margin
 EU distance selling
 US origin-based and destination-based sales tax
 Tax deductibility by the usage of the goods and services
 And so on......

The Advanced Sales Tax Framework greatly enhances the standard tax functionality while offering exponential scalability and performs
not only the scenario's mentioned earlier, but also:
 Automatically determines the correct sales tax group, item sales tax group, and tax codes through an easy and transparent determination
mechanism.
 Supports multiple tax registration numbers in one legal entity, and automatically determine the correct tax registration number on
taxable transactions.
 Supports tax determination, calculation, posting, and settlement for transfer orders.
 Defines configurable tax calculation formulas and conditions for your specific business requirements.
 Shares the tax determination and calculation solution across legal entities to save maintenance effort and avoid errors.
 Supports customer and vendor tax registration number determination.
 Supports list code determination.
 Supports tax calculation parameters at the tax jurisdiction level.
 Supports sales tax applicability on freight terms used

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 04
7

Scaleable, transparent and easy to use

Organizations can more effectively streamline and automate tax determination and calculation by leveraging our enhanced no-code tax
calculation functionality, which is part of FinEX/ASX within Dynamics 365. This can create significant advantages as it allows companies
greater functionality to handle more complex enterprise-level scenarios while also reducing some of the maintenance burden and
associated risk, even with a relatively small team. It also allows users to easily customize the solution to suit future needs as tax
regulations evolve and businesses scale

Complex VAT/sales tax Other 3rd party

Triangular transactions
calculation rules. transactions

Customs clearance Freight terms

affecting sales tax Project Transactions
responsibility

Other complex sales Controls to prevent Global sales tax

tax calculation rules user errors
registration reporting

US/EU Origin and Tax deductibility Easily adapt to

Destination based Sales Tax changing laws
Calculation and Reporting

FinEX/ASX offers more than effective tax determination and calculation. Also included are no-code globalization tools and services
and out-of-the-box content for electronic invoicing, tax audit and regulatory reporting, country-specific payment formats, business
documents, and more. The combination of these easy-to-use and flexible tools and services and the out-of-the-box content, allows
users to meet multiple tax compliance requirements and local business practice requirements in countries around the world.

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05

Global financial excellence, all the

time
The Advanced Sales Tax framework is easy to install, easy to maintain, and
continuously improved to align with changing local legal requirements. Whether
it is your internal IT department or an external vendor that will support your
advanced sales tax configuration, and/or whenever your business needs or local
laws changes, the Advanced Sales Tax framework is designed to easily adapt to
these changes.

Additionally, all ASX customers frequently receive free updates making sure
they comply with legal requirements, all the time.

Localizations
The Advanced Sales Tax Framework - PDV Balkan
contains (added) localizations for - PDVS Balkan
countries such as: - URA Balkan
- IRA Balkan
1. Poland
- Exchange rate calculation adapta- 4. Curaçao
tion according to the Polish National - VAT Reporting
Bank - Audit files
- Automated company details update
based on VAT registration (VIES) 5. Germany
- GDPDU customizations
2. Luxembourg - VAT reporting customizations
- FAIA (Audit files)
- VAT reporting eCDF (Month, Quarter, 6. UK
Year) - Banking format customizations
- EU Sales List/Intrastat
- Annual report eCDF (B/S, P&L, PCN) For more information or a demonstra-
tion, contact your local reseller, or:
3. Croatia Quantum Dynamics
- D365 in Croatian www.quantum-dynamics.eu

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 Our Promise
We are driven by our goal of empowering our clients with
solutions that help them optimize their operations and grow
their business.

Our team of passionate technology experts work at

anticipating potential problems that clients may face and
provide easy-to-use-and-execute solutions that help our
clients stay ahead of the competition.

Our firm belief in our “Quantum Culture,” which is “to do

what we say and say what we do” is what makes us deliver
successful results in a short span of time.

Quantum Omega Group Ltd.

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