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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Mohamed Morad 55 on at

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

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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Ludwig Reinhard Microsoft Employee on at

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

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
Mohamed Morad 55 on at

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

In Egypt , most of my clients request to deduct WHT while invoicing
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OsmanIstanbul 2,803 on at

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

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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Ludwig Reinhard Microsoft Employee on at

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

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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Ramit Paul 22,300 Most Valuable Professional on at

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

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)