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Calculate Consumer Use Tax

AvaTax Update calculates consumer use tax on purchase invoices or purchase transactions. Some accounting software requires you to enable consumer use tax calculation in their configuration, but you don't have to do so in AvaTax Update. If you need a refresher, check out our short guide to consumer use tax , or watch our video describing the difference between sales tax, seller's use tax, and consumer use tax.

Calculate consumer use tax on invoices

To calculate consumer use tax, follow these steps:

  1. In Microsoft Dynamics NAV, go to Home > Departments > Purchase > Order Processing > Lists and click New to create a Purchase Order or Purchase Invoice as applicable.
  2. To calculate the consumer use tax, click either Statistics (F7) or Post (F9) > Verify Tax. Messages are displayed based on the accrue amount suggested.
    • The amount of tax charged to the vendor/seller is correct, i.e. the accrue amount is 0. 

      DNAV_7_No Accrue.png

    • The amount of tax charged to the vendor/seller is greater than the amount charged by AvaTax Update, i.e. the accrue amount is negative.

      DNAV_6_Overcharged.png

    • The amount of tax charged to the vendor/seller is less than the amount charged by AvaTax Update, i.e. the accrue amount is more than 0.

      DNAV_5_2UnderchargedwithYesNo.png

      • Click No if you don't want to accrue the self-assessed consumer use tax.
      • Click Yes if you want to accrue the self-assessed consumer use tax. After you click Yes, the consumer use tax is calculated for this transaction and it is posted to AvaTax Update.
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