How to handle GST in Dynamics Ax

GST (Goods and Services Tax) is a kind of value added tax (消费税)that exists in a number of countries. there are Canada,Australia,Hong Kong, New Zealand, Singapore and so on.

Belive it or not, Malaysia is going to implement GST in which replacement of existing sales tax and services tax. however, the implementation date has to be confirm for annoucement.

Anyhow, have you ever asked yourself whether your system capable to handle this sales taxes? if your system is not designed based on the component-based articheture, you may need to modify the underlying system logic to adapt for the new features.

Good news for the ERP - Microsoft Dynamics Ax users because we do not need to make an changes if government going to implement this rules. As we know that Axapta has already provides the sales tax features in Finance module. It could be used for GST purpose too.

The following are the simple steps to setting up GST in Dynamics Ax :
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1. Firstly, go to GL -> Setup -> Sales tax -> Sales tax codes
- you need to create a new record namely GST (before that, you are required to setup the settlement period, ledger posting account),and click on "Value" button to define how many percent or amount to pay

2. Associate the debtor to this particular sales tax codes at Setup tab -> sales tax group

3. Create item sales tax group at GL -> Setup -> Sales tax -> Item sales tax group

4. After that, you have to define the sales tax codes which assciate with your item sales tax group to apply for the sale tax calculation at Setup tab.

5. Remember the sales tax calculation is define at sales tax code instead of item sales tax group.

6. Lastly, associate the item sales tax group to particular items.

7. The sales tax calculation will be effectived based on the combination setting by customer and item. No sales tax calculation if system do not meet the rules.


After finishing the sales tax setting, you may start your sales order for this particular customer and items. System will automatic generate the sales tax for your billing. It is simple and easy make your supplier chain process more efficient and reliable.

Please get more details on Goods and Services in Dynamics AX and Frequently asked questions when implementing GST in Dynamics AX