Cash basis taxes

Cash basis taxes are due when the payment is made, as opposed to standard taxes that are due when the invoice is confirmed. Reporting your income and expenses to the government based on the cash basis method is mandatory in some countries and under some conditions.

Example

You sell a product in the 1st quarter of your fiscal year, and the payment is received in the 2nd quarter. Based on the cash basis method, the tax you must pay is for the 2nd quarter.

Cấu hình

Go to Accounting ‣ Configuration ‣ Settings and under the Taxes section, enable Cash Basis.

Then, define the Tax Cash Basis Journal. Click on the external link button next to the journal to update its default properties such as the Journal Name, Type or Short Code.

Ghi chú

By default, the journal entries of the Cash Basis Taxes journal are named using the CABA short code.

Once this is done, go to Accounting ‣ Configuration ‣ Accounting: Taxes to configure your taxes. You can either Create a new tax or update an existing one by clicking on it.

The Account column reflects the proper transitional accounts to post taxes until the payment is registered.

Trong tab Tùy chọn nâng cao, quyết định về Điều kiện tính thuế. Chọn Dựa trên thanh toán để thuế chỉ phải nộp khi nhận được thanh toán cho hóa đơn. Bạn cũng có thể xác định Tài khoản chuyển thuế cơ sở dòng tiền nơi số tiền thuế được ghi nhận cho đến khi hóa đơn gốc được đối chiếu.

Impact of cash basis taxes on accounting

To illustrate the impact of cash basis taxes on accounting transactions, let's take an example with the sales of a product that costs 1,000$, with a cash basis tax of 15%.

The following entries are created in your accounting, and the tax report is currently empty.

Sổ nhật ký khách hàng (INV)
Nợ	Có
Phải thu $1.150
	Thu nhập $1.000
	Temporary tax account $150

When the payment is then received, it is registered as below :

Sổ nhật ký ngân hàng (BANK)
Nợ	Có
Ngân hàng $1.150
	Phải thu $1.150

Ghi chú

Once the payment is registered, you can use the Cash Basis Entries smart button on the invoice to access them directly.

Finally, upon reconciliation of the invoice with the payment, the below entry is automatically created:

Tax Cash Basis Journal (Caba)
Nợ	Có
Tài khoản thu nhập $1.000
Temporary tax account $150
	Tài khoản thu nhập $1.000
	Thuế đã nhận $150

The journal items Income account vs. Income account are neutral, but they are needed to ensure correct tax reports in Odoo with accurate base tax amounts.

Using a default Base Tax Received Account is recommended so your balance is at zero and your income account is not polluted by unnecessary accounting movements. To do so, go to Configuration ‣ Settings ‣ Taxes, and select a Base Tax Received Account under Cash Basis.