Tax Rates let you configure the tax rates your business charges and pays once at the merchant level, then apply them to inventory products and goods receipts. Totals — subtotal, tax, and grand total — are calculated for you, and the rate used on each line is snapshotted so editing a rate later never changes a goods receipt that's already been completed.
This article covers tax rates as they apply to inventory (goods receipts and products). The same tax rates will be reused on the menu side later — we'll update this article when that lands.
What's auto-set up for you
When a new merchant signs up in Thailand, three default tax rates are added automatically:
Name | Rate | Type |
VAT 7% | 7% | Standard |
VAT 0% | 0% | Zero-rated |
Exempt | — | Exempt |
Existing Thai merchants have the same three rates seeded by Papaya as part of the rollout — no action needed.
For other countries, no rates are seeded automatically (regimes vary too much for a safe default). You configure your own rates from the Settings page.
Managing tax rates
Go to Settings → Outlets → Tax Rates.
Adding a tax rate
Click Add tax rate.
Fill in:
Name — what you'll see in dropdowns. Examples: VAT 7%, VAT 0%, Exempt, Reduced 10%.
Type — Standard (charge tax at the rate below), Zero-rated (don't charge tax but still record as taxable), or Exempt (don't charge tax, not taxable).
Rate (%) — only shown for Standard. Enter as a percent — e.g.
7for 7%.
Save.
Editing a tax rate
Click any rate to edit. Edits apply to future goods receipts only — receipts already completed keep the rate they were created with (see Snapshotting below).
Deleting a tax rate
Click the action menu on a rate and choose Delete. If the rate is currently set as the default on any inventory product, you'll see "Tax rate is in use" — change those products' default first, then delete.
Setting a default tax rate on a product
Each raw inventory product can have a Default tax rate that applies whenever the product is added to a goods receipt. You can override it per line if needed.
Open Inventory → Products and click a product (or Add product).
Set Default tax rate in the form. The label has a small arrow icon — click it to jump straight to the Tax Rates settings page if you need to add one.
Save.
Prep products don't have a default tax rate field. Goods receipts only accept raw items, so the field would be unused there.
For more on inventory products, see Inventory Products & Categories.
Tax rates on goods receipts
When you create or edit a goods receipt, each line has its own Tax rate dropdown. The product's default rate is pre-filled, but you can change it per line — useful for mixed deliveries (e.g. VAT 7% on packaged food, Exempt on fresh produce).
The Totals section at the bottom of the form shows:
Field | What it does |
Subtotal | Sum of line totals |
Shipping fee | Optional — type a number, leave empty for ฿0 |
Prices include tax | Toggle on if your supplier's invoice already has tax baked into the line prices (common on retail receipts). Toggle off when tax is added on top (common on B2B purchase invoices). |
Tax | Sum of per-line tax, calculated using the toggle above |
Total | Subtotal + tax (if exclusive) + shipping fee |
For more on creating goods receipts, see Suppliers & Goods Receipts.
How snapshotting protects historical records
When you complete a goods receipt, Papaya stores the rate name, percentage, and tax amount directly on each line. After that:
Editing the tax rate later does not change completed receipts. If VAT 7% changes to VAT 8% next year, last year's receipts still show 7%.
Deleting a tax rate doesn't break old receipts. They keep the snapshotted name and amount.
The same goes for invoiced items generated from goods receipts — they snapshot the rate too.
This is intentional: historical records should stay accurate forever. Adjust by creating a new tax rate, not by editing an old one.
Inclusive vs exclusive — which one?
Document | Usually | Why |
Supplier purchase invoice (B2B) | Exclusive ("Prices include tax" off) | Suppliers usually quote net prices and add VAT on top |
Retail receipt or simplified invoice | Inclusive ("Prices include tax" on) | Consumer prices in Thailand typically include VAT |
Imported items | Exclusive | VAT is calculated on the landed cost |
Use whichever matches the document in front of you — Papaya stores the toggle on the goods receipt itself, so a future you reviewing the receipt can tell which mode was used.
FAQ
Why are tax rates on the merchant level instead of per outlet?
Today, all Papaya merchants operate in a single country, so one tax-rate set per merchant is simpler and avoids duplication. If we add multi-country merchants in the future, we'll add an outlet-level override.
Will these tax rates apply to my menu and POS sales?
Not yet. Tax rates currently apply to inventory only. POS integration (so a menu item can carry a default tax rate and orders snapshot it) is on the roadmap and will reuse the same tax rates you set up here.
Can I have two rates with the same name?
Yes — the system doesn't block duplicate names. We recommend keeping names distinct and self-explanatory (e.g. VAT 7% (food) vs VAT 7% (alcohol)) if you need to track different categories.
My country isn't seeded — what do I do?
Add your rates manually from Settings → Outlets → Tax Rates. We seed defaults only where we're confident about the regime — adding the wrong default is worse than adding none, because it would propagate into goods receipts.