Withholding Tax on Sales Invoices
Tax can be withheld for part or all of a sales invoice. This functionality is also compatible with intercompany transfers and payment schedules.
For more information, see About Tax.
Withholding Tax for All of a Sales Invoice
- Go to Sales Invoices.
- Select the sales invoice which you want to withhold tax for.
- Click Edit.
- In the Invoice Detail section click in the Withholding Tax field.
- Enter the correct Withholding Tax code.
- [Optional] In the Withholding Rate field enter a value to override the default tax rate set on the selected Withholding Tax code or leave the field blank to accept the default Withholding Tax rate.
- Click Save.
Example of Withholding Tax on Entire Sales Invoice
In this example, the sales invoice has a Net Total of 3000 and the VAT rate is 21% (630). The withholding rate is 10% (-300) and the invoice total is 3330.
Field |
Tax Rate (%) |
Value |
---|---|---|
Net Total | N/A | 3000 |
Tax Total | 21 | 630 |
Withholding Total | 10 | -300 |
Invoice Total | N/A | 3330 |
Excluding a Sales Invoice Line Item from Withholding Tax
- Go to Sales Invoices.
- Select the sales invoice in which you want to withhold tax on a line item.
- Click the Related tab.
- Click the Sales Invoice Line Item ID.
- Click Edit.
- In the Product section select Exclude from Withholding.
- Click Save.
Example of Withholding Tax at Line Item Level
In this example, the sales invoice has a line item Computer (1000), a line item of TV (500), and the VAT rate is 21% (315). The withholding rate of 10% (-100) is only selected for Computer.
Field |
Exclude from Withholding |
Tax Rate (%) |
Value |
---|---|---|---|
Line Item - Computer | Selected | N/A | 1000 |
Line Item - TV | Deselected | N/A | 500 |
Tax Total | N/A | 21 | 315 |
Withholding Total | N/A | 10 | -100 |
Invoice Total | N/A | N/A | 1715 |
Reporting on Withheld Tax
Expansion Pack users can use the Withholding Sales Invoice report in the Withholding Reports folder. This report displays sales invoices where tax is withheld. For more information about reports, see Reports Home.
- Go to the Reports tab.
- Click All Folders | Withholding Reports | Withholding Sales Invoice.