VAT Setup, Posting Setup etc

Business Central/NAV
1

Question,

Is there any issue if you leave VAT setup in use and basically have the posting setups configured etc in BC if you’re a Canadian company that may seldomly use it?

1 Like
2

Good question. In Business Central, keeping the VAT setup usually won’t cause issues, even for Canadian companies. The key is to make sure:

  • Posting setups are mapped correctly.

  • VAT isn’t applied by default in local transactions.

  • Codes you don’t need are disabled or avoided.

Some companies keep VAT active for occasional international transactions, and it works fine if managed carefully. So yes, technically possible and practically doable, it might work for you as it worked for us.

1 Like
3

Thank you Hardik,

For the sake of just the know-how, (I’m using a sandbox for this so I’m safe I think) lets say I want to stop using the VAT feature in the sandbox but there are transactions and I can longer move forward because its saying its tied to transactions. What would you do?

1 Like
4

Once VAT is tied to posted transactions in BC, you can’t really “remove” it since it’s part of the audit trail. What you can do instead is:

  • Block/inactivate VAT codes so they’re not used in new entries

  • Redirect future postings by adjusting posting setups

  • Create new non-VAT posting groups and reassign customers/vendors/items

That way, history stays intact but new transactions won’t pull VAT.

In practice, this is something a functional consultant usually helps with, we have a few on our bench, and if you’d like, we can even run a free workshop to walk you through the best approach.

1 Like