Thai Localization - VAT and Withholding Tax

Tax Invoices

Preparing Undue Tax

• Use Developer Mode
• In Chart of Account, add new account for Undue Tax, if not already exists.
• As admin, add access rights Show Full Accounting Features
• Go to Invoicing \> Configuration \> Settings and select Cash Basis, this will open cash basis options in Tax master data
• Go to Invoicing \> Configuration \> Accounting \> Taxes, create new undue tax for both sales and purchase

For Sales Taxes (tax scope = Sales), there is option to run Tax Invoice number by sequence model. If set properly, Tax Invoice Number will be using this sequence instead of customer invoice number / payment number

• Goto Invoicing \> Configuration \> Accounting \> Taxes
• For sales tax, choose 'Tax Invoice Sequence' (or create new one)
• Make sure you also set the same sequence for the same tax on payment too. I.e., Output VAT7% and Undue Output VAT7% must select the same sequence, both of them will result in same Tax Report

Note: this option is not avaiable for purchase tax, because the Tax Invoice Number is from vendor, and are filled manually.

Preparing Zero Tax Line

If you want tax lines with zero amount (such as 0% tax) to be shown in journal entries, follow these steps:

• Go to Invoicing \> Configuration \> Settings and select Keep Zero Line Taxes,
• Create an invoice or bill and select a tax with 0% rate
• Go to Journal Items, and you will see a tax line created with zero value

Withholding Tax and Personal Income Tax (PIT)

Setup account related to withholding tax will help set default tax amount when create certificate from payment.

• Go to Invoicing \> Configuration \> Accounting \> Chart of Accounts
• Search for withholding tax related account \> Setup
• Check "WHT Account"
• Go to Invoicing \> Configuration \> Accounting \> Withholding Tax
• Create withholding Tax (normal and personal income tax)

Configured Withholding Tax by Product (optional)

• Go to Invoicing \> Customers or Vendors \> Products
• Select product that you need withholding tax
• Add Withholding Tax on General Information Tab (Invoices) / Purchase Tab (Bills)

Configure Personal Income Tax Rate

• Go to Invoicing \> Configuration \> Accounting \> PIT Rate
• Change range or tax rate (if any)

Configure PIT Withholding Tax as following,

• Go to Invoicing \> Configuration \> Accounting \> Withholing Tax
• Create new Withholding Tax for PIT and check Personal Income Tax checkbox
• PIT Rate that will be used to calculate the withholding amount will be shown
• You can set default Withholding Tax on the Product's Purchase Tab

Tax Invoice

With this, 2 new tax related fields will be introduced in account.move.tax.invoice

• tax_invoice_number : Tax Invoice Number
• tax_invoice_date : Tax Invoice Date

In customer invoice, both field will be defaulted by Odoo's document number and date. But in supplier invoice, both field must be filled by user with tax invoice number and date from vendor.

Note: The new table account.move.tax.invoice is the main source of Thai VAT Report

Case Customer Invoice and Payment

• Create new customer invoice and choose to use sales' VAT or Undue VAT
• Process invoice and payment as per normal, Odoo document number and date should be used as Tax Invoice Number/Date

Case Supplier Invoice/Payment

1) Case Input VAT

• Create new vendor bill and choose Input VAT
• At vendor bill's tax invoice tab, fill in 2 new fields, Tax Invoice and Tax Date given by your vendor
• Validate this vendor bill, the given Tax Invoice Number and Tax Date are set in account.move.tax.invoice

2) Case Undue Input VAT

• Create new vendor bill and choose Undue Input VAT
• Validate vendor bill, journal entry will be created with Undue VAT
• Register payment as per normal, this will create new payment document as per normal
• From this process, the journal entry (cash basis) for clear undue is created, but it will be in state Draft
• Go to payment document, in tax invoice tab, fill in Tax Invoice Number and Tax Date
• Click on Clear VAT button, the journal entry (cash basis) for clear undue will now be Posted

Withholding Tax

From bills / invoices that require withheld tax,

• Create invoice and Fill withholding tax in Field WT at Invoice Lines tab.
• Post \> Register Payment.
• System will auto computed amount include withholding tax.

Note

• if you configured withholding tax on product, it fill withholding tax in field WT automatic.
• for invoices with withholding tax, > - you can't make payment to multiple invoices belongs to multiple > partners. > - you can only make payment to multiple invoices belongs to the same > partner (using Group Payments).