3665963 - How to Use Tax Transfer Documents to Generate PP36 VAT Return

In Thailand, when a business purchases services from a foreign supplier, they report the output tax on behalf of the supplier in their monthly VAT return - PP36. VAT on services cannot be credited to the regular input tax account until the payment is settled and the tax invoices are sent for the acknowledgment. During this period, the VAT is deferred, known as the deferred tax. Once the supplier gets paid, the deferred tax is then converted to the regular tax through a tax transfer document and reported in the P36 VAT return.

This note provides a solution where the system automates the generation of the Thailand PP36 VAT Return report (report category TH_VAT_PP36) based on the tax transfer documents. With this solution, you can select the exchange rate at the payment date or at the document transfer date, allowing the system to calculate the tax amount, which covers the exchange gains or losses, as preferred. In addition, with this solution, it’s no longer a need to manually adjust dates on cleared supplier invoices to fall within the reporting period when you run the Thailand PP36 VAT Return report in the Run Statutory Reports app.

Disclaimer: 

Image/data in this KBA is from SAP internal systems, sample data, or demo systems. Any resemblance to real data is purely coincidental.

• SAP S/4HANA On Premise 2023 and above versions
• SAP S/4HANA Cloud

SAP Document and Reporting Compliance, DRC, Thailand, PP36, TH_VAT_PP36, Imported Service, Tax Box 37, Deferred Tax, Tax Transfer Document, Reverse Charge , KBA , FI-LOC-FI-TH , Thailand , Problem