How to Default Sales Tax Based on Customer’s Tax Registration Status in Odoo

Applying GST + Further Tax on Specific Customers in Odoo

In Pakistan, businesses need to apply automated sales tax in Odoo based on a customer's tax registration status. The standard GST (18%) applies to most sales, but additional taxes, such as further tax (4%) or advance tax (0.1%), may apply depending on whether the customer is:

✅ A registered customer but marked as an unfiler
✅ A registered customer who is a filer but operates as a distributor or retailer

To avoid manual errors and streamline tax compliance, businesses can automate sales tax calculations in Odoo by defaulting the correct GST combination based on the customer's tax status in the Customer Master.

Steps to Configure Automated Sales Tax in Odoo

1️⃣ Create Sales Taxes in Odoo

➡ Navigate to: Accounting > Settings > Taxes
➡ Define the required tax types:

• Standard Sales Tax (GST) – 18%
• Further Tax – 4%
• Advance Tax – 0.1

2️⃣ Create a Sales Tax Group in Odoo

➡ Go to: Accounting > Settings > Taxes
➡ Create a Tax Group and set Tax Computation to "Group of Taxes"
➡ Add all three taxes to this group

3️⃣ Configure a Fiscal Position for Sales Tax

➡ Navigate to: Accounting > Settings > Fiscal Positions
➡ Click Create Fiscal Position
➡ Name it, e.g., "Unregistered GST + ADV"
➡ Assign the Tax Group in the “Tax to Apply” field

4️⃣ Assign Fiscal Position to a Customer

➡ Open the Customer Master Record
➡ Go to the Sales & Purchase tab
➡ Assign the appropriate Fiscal Position

5️⃣ Auto-Apply Sales Tax in Sales Orders

➡ When you create a Sales Order in Odoo, the system will automatically apply all relevant taxes based on the assigned Fiscal Position

Benefits of Automating Sales Tax in Odoo

🔹 Eliminates manual tax selection on invoices
🔹 Ensures tax compliance with Pakistan GST regulations
🔹 Reduces errors in tax calculations
🔹 Saves time for finance and sales teams

Conclusion

By setting up automated sales tax configuration in Odoo, businesses in Pakistan can ensure accurate GST application, compliance, and improved efficiency. Whether you're using Odoo 16, Odoo 17, or earlier versions, this approach simplifies tax management and enhances ERP automation.