Microsoft Dynamics 365 gives finance and operations teams the flexibility to manage everything from ERP to CRM in one platform. But when it comes to sales tax, even the most powerful ERP needs help. Rates, exemptions, and rules are too complex and too fluid to manage manually.
That’s where sales tax automation comes in. Connecting a modern tax engine like CereTax to Dynamics 365 ensures every transaction is calculated accurately, exemptions are applied correctly, and compliance runs in the background instead of bogging down your team.
Here’s how the integration works and what Dynamics 365 users can expect from the setup.
Why Sales Tax Automation Matters in Dynamics 365
Sales tax isn’t a ‘set it and forget it’ function. States adjust rates constantly, local jurisdictions tack on new taxes, and exemptions change by industry. For companies running on Dynamics 365, relying on static tax tables or manual overrides creates:
- Inaccurate invoices that frustrate customers.
- Audit risk if exemptions or rates are misapplied.
- Lost efficiency when finance teams spend hours reconciling errors.
Automating sales tax inside Dynamics 365 solves those problems by calculating taxes in real time, applying exemptions, validating addresses, and keeping your records audit-ready.
How CereTax Connects to Dynamics 365
CereTax integrates directly into Dynamics 365 Finance and Business Central, acting as a tax engine behind the scenes. The connection is designed to be straightforward while covering all the critical compliance steps.
Here’s a simple rundown of how it works:
- Tax Calculations: CereTax automatically calculates sales tax on orders and invoices, including U.S., Canadian, and international VAT rules.
- View Tax Details: Finance teams can see how the tax was applied on each transaction, creating transparency for audits and customer inquiries.
- Address Validation: Ensures rooftop-level accuracy, either as a stand-alone process or during transaction processing.
- Item Mapping: Your product catalog is mapped from Dynamics item codes to CereTax psCodes, ensuring taxability rules apply correctly.
- Transaction Defaults: Built-in defaults ensure minimum data requirements are met for every taxable transaction.
- Customer Exemptions: Exemption certificates are stored and applied automatically so exempt customers aren’t overcharged.
The result: CereTax becomes the single source of truth for all tax calculations, while Dynamics 365 remains the system of record for your business operations.
Setup and Implementation: What to Expect
The good news: connecting CereTax to Dynamics 365 doesn’t require months of custom IT work. With our structured setup process, most companies are live within a matter of weeks.
1. Initial Configuration
- Install the CereTax extension for Dynamics 365 Business Central or Finance.
- Configure your company defaults, nexus jurisdictions, and tax calculation settings.
2. Item and Customer Mapping
- Map Dynamics item codes to CereTax PSCodes.
- Import or assign customer exemptions so they flow seamlessly into transactions.
3. Address and Transaction Setup
- Enable rooftop-level address validation.
- Configure transaction defaults to ensure every order or invoice includes the required data for tax calculation.
4. Testing and Validation
- Run test transactions to validate tax accuracy across states, product categories, and exemptions.
- Confirm rates and exemptions match your compliance requirements.
5. Go-Live
- Once validated, the integration runs automatically. Transactions flow from Dynamics 365 into CereTax for tax determination, then return the results in real time.
Timeline and Resources
Most implementations are complete in 4–6 weeks depending on catalog size and exemption complexity. Your finance team, IT, and CereTax specialists collaborate to configure, test, and launch.
Best Practices
- Start with clean data — accurate addresses, current exemption certificates, and updated item codes.
- Engage stakeholders early (finance, operations, IT) to avoid surprises.
- Test edge cases: exemptions, multi-jurisdiction sales, and high-volume transactions.
Dynamics 365 With vs. Without Sales Tax Automation
Final Word: Smarter Compliance Inside Dynamics 365
Sales tax automation doesn’t replace your ERP — it enhances it. By connecting CereTax to Microsoft Dynamics 365, you get:
- Accurate tax on every order and invoice.
- Transparent tax details for audits.
- Address validation at the rooftop level.
- Seamless exemption management.
- A scalable solution that grows with your business.
The integration is simple, the setup is structured, and the payoff is immediate: fewer errors, reduced audit risk, and hours back for your team every month.
👉 Ready to see how CereTax transforms sales tax compliance inside Dynamics 365? Let’s connect and get you started.
FAQs on Dynamics 365 Sales Tax Integration
Q: How long does it take to integrate CereTax with Dynamics 365?
Most businesses go live in 4–6 weeks, depending on catalog size and exemption complexity.
Q: Does CereTax support international tax rules in Dynamics 365?
Yes. CereTax handles U.S. sales tax, Canadian GST/HST, and international VAT within Dynamics.
Q: What resources are needed for setup?
Typically, your finance and IT teams collaborate with CereTax specialists. Clean data (addresses, item codes, exemptions) speeds up implementation.
Q: Can CereTax validate customer addresses in Dynamics 365?
Absolutely. Rooftop-level address validation is built into the integration, ensuring location accuracy for every transaction.
