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Question about about withholding taxes ( some Clients need to deduct withholding taxes when vendor invoicing , how can i use withholding tax when invoicing

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Posted on by Mohamed Morad

Question about about withholding taxes ( some Clients need to deduct withholding taxes when vendor invoicing , how can i use withholding tax when invoicing

For example
I want to record a vendor invoice as this Dr Exp 100
Dr VAT 14
Cr Vendor 114
Dr Vendor 1
Cr Withholding tax 1

Thanks For support

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Ramit Paul 22,797 Most Valuable Professional on at

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Hello Mohamed,

This is not at all possible in each localization, because WHT is only deducted at the time of payment.

However, there are countries where it is possible, because of legislation/laws from govt.

Example INDIA.

The WHT is calculated in INV and PAYMENT Both (whichever is earlier)

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Ludwig Reinhard Microsoft Employee on at

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Hi Mohamed,

Withholding tax in AX is deducted at the time a payment is made.

For what country/region do you need this extra tax posting listed above?

Best regards,

Ludwig

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OsmanIstanbul 2,818 on at

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Hi Mohamed

We use withholding tax in Turkey unconnected to payment. If you have similar scenario then you can create a second tax code and add it to your tax group and tax item group. System will calculate to separate tax that one of them negative

Best regards

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Mohamed Morad 55 on at

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In Egypt , most of my clients request to deduct WHT while invoicing

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Ludwig Reinhard Microsoft Employee on at

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Hi Mohamed,

As far as I know Eqypt is not included in the AX2012 standard package from MS.

You can thus either make use of the workaround that Osman mentioned or reach out to a local partner who might have a tax addon for tax in Egypt available.

Best regards,

Ludwig

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Mohamed Morad 55 on at

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i think this will affect the sales tax settlement process and will lead to manual process to differentiate between WHT and Sales tax as i think it's a work around to calculate WHT on invoices by doing it as a negative sales tax

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