In the CiMSO Property Management System (PMS), users or clients have the flexibility to configure tax points according to their specific needs. This is particularly crucial for service businesses operating in Thailand, where tax points are defined by law as the moment when VAT liability arises. Here’s how it affects different types of service businesses:
1.General Service Provision: VAT liability occurs:
- When payment for services is received,
- When advance payments or deposits are received,
- When booking fees are received.
2. Contractual Service Provision: VAT liability occurs:
- When payment for the specific part of the service rendered under the contract is received.
3.International Service Provision: VAT liability occurs:
- When services are provided abroad but utilized in Thailand, VAT liability arises upon receipt of full or partial payment.
4.Payment via Cheque:
- VAT liability occurs on the date indicated on the cheque. Businesses must issue tax invoices and receipts based on the cheque date.
Here are the two main options available in CiMSO PMS, aligned with these requirements:
1. Bill on Arrival
- Bill on arrival: This setting generates a transaction and tax point immediately upon guest check-in. It ensures that VAT can be collected promptly and that tax invoices can be prepared and issued in accordance with Thai tax regulations.
- Defer VAT: This option defers the tax point until payment is received, which is particularly useful for service businesses extending credit to their clients. It allows them to manage VAT reporting based on actual payment dates, ensuring compliance with Thai tax laws.
2.Nightly Billing
In departments where nightly billing is preferred, configure Nightly Billing instead of Bill on Arrival. This requires the front desk to perform nightly billing for each room before check-out, aligning with the need for accurate VAT reporting in service businesses under Thai law.
Furthermore, CiMSO PMS distinguishes between document date and creation date, enabling precise filtering and reporting of data for tax compliance purposes. For instance, if a guest checks in today and checks out tomorrow, nightly billing can accurately reflect the transaction’s creation date in reports, facilitating compliance with Thai Revenue Department regulations.
Contact us
