Tax Invoices (SAP Library

Tax Invoices

Use

Country Version Thailand allows you to create and print out customer tax invoices, and record vendor tax invoices. When you create your input and output tax reports, the reports automatically show all of the required tax invoice information.

A tax invoice serves as proof that a liability to value-added tax has arisen. For this reason, you can only issue tax invoices once a tax liability has actually occurred (see below). Also, you must keep copies of all tax invoices in order to substantiate your value-added tax (VAT) returns.

Features

Tax Liability

Under the terms of the Thai Revenue Code, each business place is required to prepare a tax invoice for every sale of goods or services at the time the liability to VAT arises.

The concept of the time at which a business transaction becomes liable to VAT is crucial. If you sell goods, the liability arises when you deliver the goods. So when you deliver them, you give the customer a combined invoice/tax invoice, because it documents the fact that the customer owes you money for the goods (invoice) and the fact that the tax is now due (tax invoice).

If you sell services, the tax liability does not arise until the customer pays the invoice. That means that once you have provided the service, you give the customer an invoice without any tax liability. When the customer pays the invoice, you give it a tax invoice (see Deferred Tax).

In all cases, however, you must issue a tax invoice as soon as you receive a payment of any kind. This means that you must issue a tax invoice for any down payments that you receive and any cash receipts.

Tax Invoice Layout

Once you have entered an accounting document that forms the basis for a tax invoice, you can print out a tax invoice from it. The system automatically prints out tax invoices in the correct format: Any document that serves as a tax invoice must bear:

The words "Tax Invoice" in a prominent position
The names and addresses of both companies and the tax number of the issuing company
A serial tax invoice number
Details of the goods or services, including the amount of VAT incurred
The issue date

Activities

Customizing

Set up your business places and the tax invoice numbering functions.

To print out the tax invoices from FI, set up the correspondence functions; to print them out from SD, set up the output functions.

Day-to-Day Activities

You enter business documents for customers in the usual components (Accounts Receivable (FI-AR), Sales and Distribution (SD), and in Cash Journal). If a document serves as a tax invoice, the system automatically generates a tax invoice number and enters it in the accounting document header.

Note that you cannot use both FI and SD for the tax invoices, since they use different techniques for numbering. You must choose one component and adhere to it.

You enter business documents from vendors in the usual components (Accounts Payable (FI-AP), Materials Management (MM), and in Cash Journal). If a vendor sends you a document that serves as a tax invoice, you record the tax invoice number printed on it, and the system generates a tax invoice number of your own.

You can print out customer tax invoices in Financial Accounting (FI) using the generic correspondence functions, and in Sales and Distribution (SD) using the generic output functions. Note that you cannot print out tax invoices that you have created in the General Ledger (FI-GL).

Reporting

When you come to submit input tax and output tax reports to the authorities, you list the vendor and customer tax invoices, complete with tax invoice numbers and tax date. For more information, see Input and Output Tax Reports.