Business Central 2026 release wave 1 (BC28): Calculate excise taxes

Hi, Readers.
Dynamics 365 Business Central 2026 wave 1 (BC28) is generally available. More details: General Available: Dynamics 365 Business Central 2026 release wave 1 (BC28)

I will continue to test and share some new features that I hope will be helpful. In this post, I would like to talk about Calculate excise taxes.
Calculate excise taxes:

Business value:
The excise taxes feature helps businesses by automating the complex process of calculating excise tax amounts. With this feature, businesses follow specific tax regulations for different products and regions. It reduces the risk of errors and lowers the chance of penalties.

Feature details:
Excise taxes apply to specific goods and services, and manufacturers or retailers often include these taxes in the product price. Governments use excise duties to generate revenue and to discourage the consumption of goods that negatively affect public health or the environment.

The new Excise Taxes feature automates the calculation of excise duties by applying specific rules and rates for different products and regions.

https://learn.microsoft.com/en-us/dynamics365/release-plan/2026wave1/smb/dynamics365-business-central/calculate-excise-taxes?wt.mc_id=DX-MVP-5004336

Scope of the initial release: The initial release doesn’t include compliance or statutory reports. Instead, it introduces a flexible excise tax calculation framework. The framework supports different calculation models and can be adapted to meet various regulatory requirements through configuration.

Let’s see more details.

Before calculating excise taxes, you must configure excise tax types.

Select Search (Alt+Q) in the upper-right corner, enter Excise Tax Types, and then choose the related link.

Choose New to create a new Excise Tax Type.

For each excise tax type, you can define a tax basis as Weight, Volume, Quantity, Sugar Content, Alcohol Volume (ABV), or Active Content.

Below are six examples provided by Microsoft.

You also need to configure excise entry types, and specify which item ledger entry types contribute to the excise‑liable quantity.

The following options are available: Purchase, Sale, Positive Adjustment, Negative Adjustment, Output, or Assembly Output.

You can choose Setup Default Entry Types to create default entry types for all tax types.

As the last step, set up excise duty rates for each excise tax type to calculate the final tax amount based on the selected basis and the accumulated excise‑liable quantity.

You also need to configure the items and fixed assets you want to include in excise tax calculations.

Next, we need to link the Ecise Tax Type to the item. You can find the Excise Tax tab on the Item Card.

For example: In addition to the Ecise Tax Type, you also need to specify the Excise Tax Unit of Measure Code and the Quantity for Excise Tax.

Excise Tax Unit of Measure Code
Specifies the unit of measure for tax basis.

Quantity for Excise Tax
Specifies the amount per unit based on tax basis.

For PLASTIC, I enabled ‘Purchase‘ in the Excise Entry Types, and then created and posted a Purchase Order for testing purposes.

Okay, now we can register the quantity and amount through Excise Journal.
Select Search (Alt+Q) in the upper-right corner, enter Excise Journal, and then choose the related link.

Since there is currently no Excise-related data in the demo database, we can go ahead and create a new batch.

For example,

PS: Below are the Excise Journal Batches provided during the Microsoft demo, which you can use for reference

Then you can choose Generate Excise Tax Entries.

Set the Posting Date and Date Filters, then choose OK.

Excise Tax Journal entries will be automatically generated based on Item Ledger Entry quantities for the specified date range.

The amount will be automatically calculated based on the information set on the Item Card and the excise duty rate.

If you confirm there are no problems, you can choose Register.

Choose Yes.

Done.

Registered entries can be found in Excise Taxes Transaction Logs.

Great, give it a try!!!😁

PS: What’s new: Excise Taxes

END

Hope this will help.

Thanks for reading.

ZHU