---
id: feature/573262
type: feature
title: Calculate and report VAT based on expense reports
summary: "Expense Agent: Calculate and report VAT based on expense reports. In preview, GA 2026-12 (Microsoft 365 roadmap). Expense Agent supports automated VAT handling for expense reports, which can help simplify tax management and improve reporting accuracy. Key capabilities include: Automatic VAT Calculation : Expense Agent identifies VAT-relevant expense transactions and calculates applicable VAT amounts based on the information in submitted expense reports."
tier: official
language: en
system: copilot
tags:
  - expense agent
review:
  state: derived
  by: null
  at: null
  flags: []
generated:
  at: "2026-10-07T23:41:05.192Z"
  pipeline: 0.2.0
  prompts: {}
  input_hash: f142401e107fd01d844014d157d7a8ee2eb2d8738b78b0a981f90d0ffbd48899
evidence:
  - kind: roadmap
    url: https://www.microsoft.com/microsoft-365/roadmap?id=573262
    title: Microsoft 365 roadmap 573262
    date: "2026-09-30"
    commit: null
    t: null
    quote: null
  - kind: video
    url: https://www.youtube.com/watch?v=tj1vvsmAMVs&t=598s
    title: "What's new in Expense Agent: Overview (2026 release wave 2): VAT Reclaim in Expense Reports"
    date: null
    commit: null
    t: 598
    quote: null
  - kind: video
    url: https://www.youtube.com/watch?v=tj1vvsmAMVs&t=683s
    title: "What's new in Expense Agent: Overview (2026 release wave 2): VAT Specification per Expense Line"
    date: null
    commit: null
    t: 683
    quote: null
  - kind: learn
    url: https://learn.microsoft.com/dynamics365/business-central/expense-management/expense-agent-edit-expenses
    title: Review and Edit Expenses in Expense Agent
    date: null
    commit: null
    t: null
    quote: null
  - kind: learn
    url: https://learn.microsoft.com/dynamics365/business-central/expense-management/expense-agent-upload-receipts
    title: Upload Receipts and Create Mileage Expenses
    date: null
    commit: null
    t: null
    quote: null
  - kind: learn
    url: https://learn.microsoft.com/dynamics365/business-central/expense-management/expense-management-categories-rules
    title: Set Up Expense Categories, Rules, and Policies
    date: null
    commit: null
    t: null
    quote: null
  - kind: learn
    url: https://learn.microsoft.com/dynamics365/business-central/expense-management/expense-management-overview
    title: Expense Management Overview in Business Central
    date: null
    commit: null
    t: null
    quote: null
  - kind: learn
    url: https://learn.microsoft.com/dynamics365/business-central/expense-management/expense-management-post-reports
    title: Post Expense Reports in Business Central
    date: null
    commit: null
    t: null
    quote: null
  - kind: learn
    url: https://learn.microsoft.com/dynamics365/business-central/expense-management/expense-management-setup
    title: Set Up Expense Management in Business Central
    date: null
    commit: null
    t: null
    quote: null
links:
  learn:
    - https://learn.microsoft.com/dynamics365/business-central/expense-management/expense-agent-edit-expenses
    - https://learn.microsoft.com/dynamics365/business-central/expense-management/expense-agent-upload-receipts
    - https://learn.microsoft.com/dynamics365/business-central/expense-management/expense-management-categories-rules
    - https://learn.microsoft.com/dynamics365/business-central/expense-management/expense-management-overview
    - https://learn.microsoft.com/dynamics365/business-central/expense-management/expense-management-post-reports
    - https://learn.microsoft.com/dynamics365/business-central/expense-management/expense-management-setup
  objects: []
  features: []
  topics: []
  localizations: []
  videos:
    - video/tj1vvsmAMVs
  posts: []
  guidelines: []
roadmap_id: "573262"
wave: 2026 release wave 2
status: preview
roadmap_status: In development
release_phase: General Availability
ga_date: 2026-12
preview_date: 2026-10
area: Expense Agent
whatsnew_url: null
localizations: []
objects_touched: []
---

# Calculate and report VAT based on expense reports

> Expense Agent: Calculate and report VAT based on expense reports. In preview, GA 2026-12 (Microsoft 365 roadmap). Expense Agent supports automated VAT handling for expense reports, which can help simplify tax management and improve reporting accuracy. Key capabilities include: Automatic VAT Calculation : Expense Agent identifies VAT-relevant expense transactions and calculates applicable VAT amounts based on the information in submitted expense reports.

[Microsoft 365 roadmap 573262](https://www.microsoft.com/microsoft-365/roadmap?id=573262) · Expense Agent · in preview · roadmap status "In development", phase General Availability

## What Microsoft says

Expense Agent supports automated VAT handling for expense reports, which can help simplify tax management and improve reporting accuracy. Key capabilities include: Automatic VAT Calculation : Expense Agent identifies VAT-relevant expense transactions and calculates applicable VAT amounts based on the information in submitted expense reports. VAT-Aware Expense Processing : VAT values are incorporated into the expense review and processing workflow, reducing the need for manual tax calculations. Enhanced VAT Reporting : VAT amounts captured from employee expenses are aggregated and reported, supporting financial reporting and tax recovery processes. Improved Compliance : Standardized VAT handling helps ensure that expense-related tax calculations apply consistently across the organization. Human in the loop : If the VAT calculation is enabled for expense reports, accountants must review VAT calculation and confirm that everything is correct before posting it.

## Dates

- General availability: December CY2026 (2026 release wave 2)
- Public preview: October CY2026
- On the roadmap since 2026-09-30, last changed 2026-09-30

## Covered by

Matched by Haiku among videos and Learn pages in the same galaxy system, checked against the roadmap ids and the evidence text. Every link below was reviewed by Opus.

### Videos

- [What's new in Expense Agent: Overview (2026 release wave 2)](../videos/tj1vvsmAMVs.md): VAT Reclaim in Expense Reports at [9:58](https://www.youtube.com/watch?v=tj1vvsmAMVs&t=598s); VAT Specification per Expense Line at [11:23](https://www.youtube.com/watch?v=tj1vvsmAMVs&t=683s)

### Microsoft Learn

- [Review and Edit Expenses in Expense Agent](https://learn.microsoft.com/dynamics365/business-central/expense-management/expense-agent-edit-expenses)
- [Upload Receipts and Create Mileage Expenses](https://learn.microsoft.com/dynamics365/business-central/expense-management/expense-agent-upload-receipts)
- [Set Up Expense Categories, Rules, and Policies](https://learn.microsoft.com/dynamics365/business-central/expense-management/expense-management-categories-rules)
- [Expense Management Overview in Business Central](https://learn.microsoft.com/dynamics365/business-central/expense-management/expense-management-overview)
- [Post Expense Reports in Business Central](https://learn.microsoft.com/dynamics365/business-central/expense-management/expense-management-post-reports)
- [Set Up Expense Management in Business Central](https://learn.microsoft.com/dynamics365/business-central/expense-management/expense-management-setup)

Source: Microsoft 365 roadmap. Status words follow the roadmap.