Automate Global and Thai Taxes in Odoo with AvaTax

Managing tax in multiple regions from Thailand’s VAT to U.S. sales tax or EU VAT is one of the biggest operational challenges for growing businesses. Manually applying tax rates, updating rules, and checking for exemptions not only wastes time but also exposes your business to compliance risks.

Thankfully, Avalara’s AvaTax, when integrated with Odoo ERP, allows businesses to manage their tax obligations automatically, accurately, and in real time, across countries.

What Is AvaTax?

AvaTax is a tax engine built by Avalara that calculates taxes in real time based on:

• Buyer and seller locations
• Product or service type
• Country/state/province-specific rules
• Exemptions, thresholds, and currency

Unlike manually updated tax tables, AvaTax is cloud-based, always up-to-date, and fully integrated with global ERP systems like Odoo. It ensures that taxes applied on your sales and purchase transactions match current laws in each jurisdiction.

Why Integrate AvaTax with Odoo?

Odoo’s accounting and tax modules are powerful, especially for regional use. But for companies operating in:

• Thailand with VAT and withholding taxes
• The U.S. with over 13,000 tax jurisdictions
• Europe with complex VAT rules
• Multinational setups involving different currencies and languages

… AvaTax delivers a single source of tax truth.

Here’s how it strengthens Odoo:

Benefit	Odoo Native	Odoo + AvaTax
Automatic tax rate updates	❌	✅
Multi-jurisdiction support	⚠️ Limited	✅ Full
U.S. sales tax handling	❌	✅
Thailand VAT + WHT	✅	✅ (+ real-time)
Exemption certificate handling	❌	✅
Multi-currency + international tax	⚠️ Basic	✅ Advanced

Using AvaTax in Thailand with Odoo

In Thailand, most businesses charge a 7% VAT on goods and services and apply withholding tax (WHT) depending on the service category.

With AvaTax connected to Odoo:

• Invoices automatically apply correct VAT % or WHT %
• Export invoices apply 0% VAT as per Thai tax law
• Specific products/services can be exempted or custom-coded
• Monthly reporting data can be synchronized to Avalara, exported for PP30/PND3/PND53 filing

This integration is especially useful for:

• Thai businesses expanding to U.S., EU, or ASEAN markets
• Multi-company setups with tax differences by country
• Local businesses working with exempt entities or foreign clients

How to Set Up AvaTax in Odoo (Step-by-Step)

Install the AvaTax Connector
Available through the Odoo App Store or via your Odoo implementation partner.

Configure API Credentials
From your Avalara account, get the Account Number and License Key.
Enter these in:
Odoo → Accounting → Configuration → Settings → AvaTax

Set AvaTax as Tax Engine
In Odoo Settings, enable AvaTax to replace the native tax calculation system.

Assign Product Tax Codes
Map each product category to a corresponding AvaTax code.

Validate Customer Addresses
AvaTax checks ZIP codes, cities, and provinces to ensure accuracy. Odoo auto-validates shipping addresses before tax is applied.

Test and Use in Transactions
Create a quotation, confirm a sale, and view the AvaTax-calculated amount on the invoice. The calculation appears instantly and is recorded in Avalara.

What AvaTax Does in the Background

Tax Reporting & Filing

You can access all transaction records in:

• Odoo’s journal and invoice reports
• Avalara’s AvaTax dashboard (for centralized reports)

From there, you can:

• File returns (U.S., Canada, etc.)
• Generate VAT summaries (EU, ASEAN)
• Download documents for Thai VAT forms (PP30, PND53)

Example Use Case: Thai Retailer Selling Globally

Company: Bangkok-based apparel brand
Sells to:

• Thailand (local VAT)
• Singapore (0% VAT exports)
• California, USA (local sales tax)
• Germany (EU VAT)

With AvaTax + Odoo:

• Applies 7% VAT on Thai invoices
• Applies 0% VAT for Singapore exports
• Applies 7.25% CA tax for U.S. buyer based on ZIP
• Applies 19% German VAT (if customer has no VAT ID)
• All handled automatically, without separate rules in Odoo

Who Should Use AvaTax with Odoo?

You’ll benefit most from AvaTax if:

• You sell in more than one country or region
• You manage U.S. or Canadian tax compliance
• You invoice in multiple currencies
• You want accurate tax on your eCommerce store or marketplaces
• You’re tired of checking tax tables manually

Final Thoughts

As your business grows across borders, so does the complexity of your tax compliance. Odoo’s integration with AvaTax ensures you stay ahead, by automating every tax rule and making compliance invisible to your sales team but 100% traceable for your accountants.

From Bangkok to Berlin, AvaTax handles the complexity, so your business can focus on growth, not tax codes.

📩 Need help configuring AvaTax with Odoo?
We provide setup, testing, training, and go-live support.

🌐 Visit us at spellboundss.com
📧 Email: contact@spellboundss.com