• From: Managua
  • Registered: 11/01/2019
  • Posts: 26

Topic: Withholding tax

Hello

In my country we have a tax retention on invoice either supplier invoice or costumer invoice. Now then with supplier invoice a put a negative tax, so that I resolve the problem(I don´t know if I did it good) but in costumer invoice don't left me put a negative tax.

So my wish is a tax that make a dedution on invoice either in supplier and Costumer invoice.


Good Job!

Regards

Freddy Norori
accountechni.com

serviciosac101's Website

  • From: Singapore, India, Chennai
  • Registered: 05/02/2009
  • Posts: 6,160

Re: Withholding tax

Make a head of account in the CoA for a tax retention account (for supplier deductions and customer deductions separately) and make an entry for tax deduction as needed to these accounts and then contra them when paid / refunded as the case may be.

apmuthu's Website

  • From: Managua
  • Registered: 11/01/2019
  • Posts: 26

Re: Withholding tax

Thanks, Apmuthu.

I made something like that, the point is the costumer invoice i need the tax retention make a deduction and the costumer pay only the diference.

Ex: Invoice $100 - $2 (tax reduction ) = $ 98 <-- My invoice will be posted with this amount and when I received the pay only view the net of Invoice.

In the sales invoice the tax don't let put a negative amount.

In the accounting I made exactly your propose.

Freddy Norori
accountechni.com

serviciosac101's Website

  • From: Singapore, India, Chennai
  • Registered: 05/02/2009
  • Posts: 6,160

Re: Withholding tax

When you provide a tax retention, do you get re-imbursed by the tax authorities or can you deduct it from payments being made to the tax authorities - this does not seem intuitive.

apmuthu's Website

  • From: Managua
  • Registered: 11/01/2019
  • Posts: 26

Re: Withholding tax

It made a compesation for supplier deductions and customer deductions and if in favor of the authorities I have to make a payments in the otherwise I kept to my favor until the closing year when i deduct it from final Tax reports.

Now I had make a Credit Note for the Retention of my costumer. I mean the invoice is for $100 I received a Pay for $98 and make a credit note for $2, but seem complicate in operations.

Freddy Norori
accountechni.com

serviciosac101's Website

  • From: Singapore, India, Chennai
  • Registered: 05/02/2009
  • Posts: 6,160

Re: Withholding tax

A debit note to the retention account may be in order.

apmuthu's Website