5 Sales Tax Compliance Questions MS Dynamics 365 Users Want Answered

Tim Roden
December 5, 2022

Microsoft users have been pushing toward the shift to the cloud and modernizing their IT strategy. However, it is essential they do not overlook their sales tax strategy as a factor in these decisions. As businesses grow and tax regulations become more complex, it will be beneficial to keep sales tax compliance manageable.

Sovos recently presented with MS Dynamics World to talk through cloud-based solutions and how they affect tax compliance, diving into the benefits of global tax solutions and advice for first time buyers. This panel event, held on November 3, 2022 included experts from varying backgrounds. Moderated by Rick McCutcheon, Dynamics 365 MVP, the speakers included:

  • Tim Roden, Solution Principal, Sales and Use Tax, Sovos
  • Stephen Bradshaw, State and Local Tax Partner, Bennett Thrasher
  • Dana Chirieac, ERP Senior Technical Architect, GraVoc
  • Julia Kiva, Director, Solution Delivery Europe/Solution Architect at Argano

The group covered several key questions that Microsoft Dynamics 365 users may have and reviewed best practices for ensuring sales tax compliance in the digital age.

Which customers and industries are a good fit for global tax solutions?

All industries and their customers could benefit from global tax solutions, especially those in the United States. It has become increasingly difficult to keep pace with the amount of rates and rate changes, particularly if an organization is still relying on manual processes.

Global tax solutions can be a good fit for any business looking to reduce its manual efforts and decrease the expenses related to tax compliance.

How has the shift to cloud solutions impacted B2B organizations?

Cloud-based solutions give one single source of truth, connecting different teams and departments, including finance, tax, IT and more. Additionally, cloud-based solutions help create standardized processes across an entire company.

How has system consolidation and cloud-based solutions eased the burden of compliance for IT and finance teams?

System consolidation gives IT the support they need. With one system, it takes less manual effort to define and solve a problem. Furthermore, utilizing the cloud simplifies the process. Organizations no longer need to keep track of every county and zip code for rate changes, as they can implement a solution to handle all such changes.

What are the key functionality areas in a strong tax solution?

A good sales tax compliance option will work seamlessly with your Dynamics 365 solution. Your tax solution should work together with Dynamics to automate the tax compliance process. Neither one will interfere with the other.

Tax compliance reporting should also be managed by the tax solution, leaving much less manual effort on the tax and IT teams.

What advice can you give organizations looking to leverage global tax solutions for the first time?

Ensure the solution you are considering covers the locations that you operate in—and has the capability to scale with your business as it grows. It’s also important to run tests, ensuring the solution works seamlessly with your current ERP.

Businesses should also plan for where they are going to be and not just focus on where they are currently. This will help to avoid upgrading or renegotiating farther down the road. Organizations must understand how a tax solution affects different departments of the business—the tax and IT departments need strong communication, as that will lead to a successful implementation.

Finally, give plenty of time for set up and configuration. It is not recommended to rush a project like this.

Take Action

Want to learn more about MS Dynamics 365 and sales tax compliance? Listen to the full conversation.

Sign up for Email Updates

Stay up to date with the latest tax and compliance updates that may impact your business.


Tim Roden

Tim Roden is Sales Engineer, SME (Subject Matter Expert) for Indirect Tax. He and his group specialize in solving complex business and systems challenges around Indirect Tax for Global and Enterprise businesses. Tim has been providing expertise in these areas for Sovos since 2014. Prior to his time at Sovos, Tim worked as a Senior Solutions Engineer for ACI Worldwide, supporting SaaS-based electronic payment solutions for Global and Regional Financial Institutions. Tim has a B.A. in History from Wake Forest University.
Share this post

November 29, 2023
Taxation of Motor Insurance Policies: Spain

There is a wide variety of indirect taxes and parafiscal charges that apply to the different elements of coverage that can be included under a motor insurance policy in Spain. You can read our blog to learn more about taxation of motor insurance policies in Europe, this blog focuses on some of the specifics to […]

North America ShipCompliant
November 28, 2023
How the Beverage Alcohol Industry Prioritizes DEI Initiatives

Diversity, equity and inclusion (DEI) initiatives have quickly become staples for numerous businesses across industries. The beverage alcohol industry is also demonstrating that these efforts are as core to their company successes as lobbying and member education. We’ve gathered a handful of examples of DEI programs that our partners have implemented, showcasing how ensuring a […]

North America Tax Information Reporting
November 22, 2023
IRS: Form 1099-K Reporting Threshold Change Delayed Again

The IRS recently announced a delay of the new $600 Form 1099-K reporting threshold for third-party settlement organizations (TPSOs) for calendar year 2023. Instead, 2023 will be an additional transition year, with reporting not required unless a taxpayer receives over $20,000 and has more than 200 transactions in 2023. “We spent many months gathering feedback […]

VAT & Fiscal Reporting
November 21, 2023
Import One Stop Shop Expanded Under ‘ViDA,’ ‘Customs Reforms’ Packages

In the last year, the European Commission has put forward two proposals, the “VAT in the Digital Age” and the “EU Customs Reform,” which could significantly expand the scope of the Import One Stop Shop over the next several years. What is the Import One Stop Shop? The Import One Stop Shop (IOSS) is a special […]

VAT & Fiscal Reporting
November 20, 2023
VAT in the Digital Age (ViDA) Potentially Delayed

In 2022, the European Commission published its “VAT in the Digital Age” initiative (ViDA), which would make widespread changes to current VAT rules under Council Directive 2006/112/EC (the EU VAT Directive). The Commission proposed an ambitious timeline for ViDA, with the first changes to take effect in January 2025. As with any amendment to the […]