Calculate and report VAT based on expense reports

Microsoft 365 roadmap 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): VAT Reclaim in Expense Reports at 9:58; VAT Specification per Expense Line at 11:23

Microsoft Learn

• Review and Edit Expenses in Expense Agent
• Upload Receipts and Create Mileage Expenses
• Set Up Expense Categories, Rules, and Policies
• Expense Management Overview in Business Central
• Post Expense Reports in Business Central
• Set Up Expense Management in Business Central

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