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Calculate Consumer Use Tax on Purchase Transactions

In  your accounting software, calculate and verify consumer use tax, assign the use tax to an accrual account, and send the transaction to AvaTax for consumer use tax reporting. AvaTax settles your accounting software's GL accounts with the accrual amount accordingly.

Calculate consumer use tax on transactions in the following ways:

Configure consumer use tax

Before you start calculating consumer use tax in Microsoft Dynamics NAV, you need to enable the following use tax assessment options in Microsoft Dynamics NAV:

  1. Go to Microsoft Dynamics NAV > Home > Departments > AvaTax > Setup > AvaTax Configuration > Tax Calculation tab and select the Enable Use Tax Assessment option.

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  2. Go to Microsoft Dynamics NAV > Home > Departments > AvaTax > Utilities > Vendor Use Tax Assessment and select the Enable Use Tax Assessment option.

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Calculate consumer use tax

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, i.e. the accrue amount is negative.

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

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      • 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 the Admin Console.