Have a look at this guide: Create and use tax codes | Manager
Hi Lubos,
Yes. I understand what has been explained in the Tax guide. My request is to
how I can show the actual VAT 7% tax figure printed under Sub-Total line.
I give you an example:-
Sceneario 1
My product purchase in total is 300,000
Vat 7% = 21,000
Therefore: The purchase Invoice printed will be as follows:-
Product 300,000
Subtotal 300,000
Vat 7% 21,000
Total 321,000
The above is the actual format provided in Manager.io
Scenerio 2
Making final payment to supplier (minus payments make earlier)
Note: Working on the same purchase invoice.
Product 300,000
Customer pay Advance 100,000 (Already issued Payment earlier)
Vat 7% on Advance Payment 7,000 (Already issued Payment earlier)
Therefore: The purchase Invoice printed will be as follows:-
Product 300,000
Vat 7% 21,000
SubTotal 321,000
Less Advance Payment 100,000 (Inclusive Vat7%)
Total 221,000
Qusetions:-
In Manager.IO 1. Possible Less Advance Payment to show 93,000 instead of
100,000 (Vat 7% 7,000 inclusive)
2. Therefore: Vat 7% 21,000 to show 21,000 - 7,000 = 14,000.
3. Advance payment 100,000 to show 100,000 - 7,000 = 93,000.
Actual Scenario will be:
Product 300,000
Vat 7% 14,000 (Instead of 21,000)
Subtotal 314,000
Less Advance 93,000 (Instead of 100,000)
Total 221,000
The actual scenario is what my auditor/customer wants to see on the purchase invoice.
Can you guide me or can it be done. Thank You Mr.Lubos
The sample below shows the actual format. The figures in red are payments not inclusive of Vat 7% which I have already paid thru Advance Payment earlier. The Vat 7% 28,600.50 is tax on subtotal of 408,578.54 only i.e.
Can you show screenshot of edit screen how you are entering the purchase invoice into the system?
It seems like purchase invoice you are entering from supplier has amounts which are tax exclusive. But purchase invoice you are entering into Manager has the box checked Amounts are tax inclusive.
So uncheck the box Amounts are tax inclusive on edit screen and see what happens when you view the invoice.
Hi Lubos,
The VAT 7% is gone which is not correct. If you look at the screenshot and refered it to my earlier explaination, the screenshot below is not correct. After unchecked the box “Amount are tax inclusive” the Vat 7% is not correct and they should not be any balance due. You may compare the 2 screenshot below and the 2 sub-total figures is correct but not the VAT.
Alright, forget about their purchase invoice for a minute and think about how it should be.
You purchased Fig Leaf Tea for 978,672 THB
VAT 7% on 978,672 THB is 68,507.04 THB
Why would VAT 7% be only 28,600.50 THB? Just because you paid them in advance? That’s not how VAT works. VAT amount doesn’t change because you paid someone in advance. Is this point clear?
Hi Lubos,
Okay. Thailand Tax law requires us to deduct VAT 7% when paying Advance/Deposit for buying goods from supplier. If we take the full VAT calculation which is 68,507.04 THB, then how are we to contra off the VAT we pay earlier (Advance payment)? We need to submit VAT every month and purchase invoice may takes 3 months to fulfill the full payment.
The 28,600.50 THB is calculated based on the final outstanding amount not forgeting we have to deduct the already paid Advance Payment amount which include the 7% tax to make final payment.
Deposit paid of 100,000 with associated vat
Final payment is for the remaining balance with a vat payment just on the final balance (of 200,000 =300,000 - 100,000).
The initial 100,000 deposit nor is it’s associated Vat is paid again.
Which means the the final invoice just for 200,000 with vat
Or the final invoice shows the full purchase price of 300,000 with two payments cf
100,000 no additional Vat
200,000 with vat on just this
How is the easiest way to show this in Manger is beyond me
Hi Patch,
Obviously, I cannot issues separate Purchase Invoice just to make the VAT 7% correctly calculated. Because the advance payment 100,000 does not says how many goods we have already received. That’s why I asked if Vat 7% can be calculated on the final outstanding amount (total amount)? Thanks
After reading the Thai law on VAT on the Revenue Department web site, I do not see that you have any choice except to enter separate purchase invoices. The law assesses tax liability proportionally as goods are delivered or payments are made. The wording is that tax is assessed on amounts “received or receivable.” But that applies to the seller as well as the buyer. So I believe your supplier should be issuing you tax invoices when you pay deposits. Check with a qualified local accountant or the Revenue Department about this.
Maybe the final invoice could include negative value line items corresponding to the prior deposits
Eg deposits recorded as
100k Deposit towards supply of 300k goods dated …
And final payment showing items
300k goods
-100k deposit from date …
200k total goods & services today
Tax status of each line item set to achieve appropriate balance.
If you have to deduct VAT 7%, then obviously you need to use VAT 7% tax code on advance/deposit transaction. Have you done it? Make sure your advance/deposit transaction has VAT 7% tax code applied to it. This means your special account balance will be VAT exclusive.
Then on purchase invoice you need to use VAT 7% tax code on your negative line items too.
Hi Tut,
I already know Thai VAT law.
Thank You
Hi Lubos,
Yes. Let me try it out.
Thank you
Hi Mr. Lubos,
It works. Thank you for your kind help.
Regards
Hi Lubos,
I am confused with the Vat 7% amount balance shown in the Balance sheet report.
The actual VAT 7% paid should amount to 68,507.04. The amount is derived from #IV1901 top first three rows. Balance sheet shows 81,591.15 which will not tally the actual Vat amount paid.
What is the Debit and Credit means here and I see 2 amounts appearing pon the credit side. Please advice
Regards
@emonchan5 what’s that payment on 13/02/2018 ? What does it represent? Because without this payment the amount would be 68,507.04