Goods and Services (GST) in Dynamics AX

What is GST?
Goods and Services Tax (GST) is a tax charged on the supply of goods and services made in Singapore and on the importation of goods into Singapore. Here is a quick overview of GST and how to handle the GST by using Dynamics AX (formerly named Axapta).

Types of taxes
There are two types of taxes one is input tax, another is output tax.
Input tax is the provision from buying goods or services from GST-registered business or import goods into Singapore whereas output tax is that tax collected from customer.
After we have known the basic terms of GST and we could start to setting up the sales tax in Dynamics AX. There are a few things we need to configure such as sales tax calculation, settlement periods, sales tax authorities, item sales tax groups, ledger posting groups.

1. Sales Tax Calculation
The current tax rate in Singapore is 7%. Remember to define the rate in Sales tax code and associate to sales tax group and item sales tax groups. Of course you may need to maintain the rate according to the latest rate manually.

2. Settlement Periods
The GST legislation allows for two alternative tax periods, one is for three month another one for one month. If a non-profit has an annual turnover of $20 million or more they must elect to have a one-month tax period. Those below $20 million can elect either monthly or quarterly.

3. Sales Tax Authority
All the tax payment need to report to Inland Revenue Authority of Singapore (IRAS)

4. Ledger Posting Groups
You may set up the posting profile for GST transaction such as ledger account for Account Payable and Settlement Account.


a. Account Payable
- Outgoing sales tax that we collect on behalf of tax authority when we sell the goods to customers.
- For example, we sold item to customer with the subtotal $95, tax amount is $5. The ledger posting transaction as below:

- Ledger account DR ($) CR($)
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Customer account (Account Receivable) 100 (DR)
Account Payable 5 (CR)
Sales Revenue 95 (CR)

b. Settlement Account
- At the end of the sales tax settlement period for the sales tax authority, you can run the Sales tax payment periodic job. During this job, the amount that the company owes the sales tax authority for the period is transferred from this account to the sales tax authority's vendor account.

For simple ways to setting up Sales Tax or GST in Dynamics AX please refer to http://novprincess.blogspot.com/2007/12/how-to-handle-gst-in-dynamics-ax.html

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Frequently asked questions when implementing GST in Dynamics AX

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