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

EMEA VAT & Fiscal Reporting
January 25, 2023
Understanding VAT Between European Countries

All European countries charge VAT on goods and services. VAT is a consumption tax added during each production stage of goods or services. Although VAT is near-universal according to the EU VAT Directive, VAT rates within the EU do differ. This is because the EU VAT Directive allows Member States to choose whether to implement […]

North America ShipCompliant
January 24, 2023
Top Takeaways: 2023 Direct-to-Consumer Wine Shipping Report

Sovos ShipCompliant recently released the 2023 Direct-to-Consumer (DtC) Wine Shipping Report with our partner, Wines Vines Analytics. This look-back at 2022 is the most comprehensive, complete and exclusive collection of data and insights on the state of the channel. While 2022 saw the first-ever decline in either—let alone both—value and volume of shipments, the DtC […]

North America Unclaimed Property
January 17, 2023
How to Avoid 6 Common Unclaimed Property Myths

Unclaimed property is often misunderstood. Despite their best intentions, we find that many companies operate under factually inaccurate assumptions that could put their business at risk. We’ve outlined some of the top myths and misconceptions around unclaimed property to help you stay compliant. Unclaimed property reporting is optional Filing unclaimed property is not an option. […]

North America ShipCompliant
January 11, 2023
Supreme Court Denies Cert on Retailer DtC Shipping – What Does That Mean?

On Monday, January 9, the U.S. Supreme Court rejected a petition to hear an appeal of B-21 v. Bauer, a case revolving around the issue of interstate direct-to-consumer (DtC) shipping by alcohol retailers. B-21 stemmed from a challenge to a North Carolina law that allows in-state retailers to ship wine through third-party carriers to North […]

EMEA VAT & Fiscal Reporting
January 10, 2023
An Introduction to EU VAT

Nearly every major economy has a form of VAT. That’s 165 countries, each with its own compliance and reporting rules. The main exception is the United States. VAT is by far the most significant indirect tax for nearly all the world’s countries. Globally VAT contributes more than 30% of all government revenue. Levying VAT is […]