Witholding tax on customer payment.

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Posted on by Harisgillani

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Hi Experts,

Any body have idea how i can use withholding tax functionality on customer payment. According to my research this funtionality is country specfic and available in brazil region. If this is the case then any body can help me to enable this functionality withholding tax on customer payment.

Your reply will be appreciated.

Regards

Haris Gillani

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Answers (1)

ZvikaR 89 on at

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RE: Witholding tax on customer payment.

This IS how withholding works in SOME countries.

- You want:

- your revenue to reflect the full amount

- recording VAT/sales tax liability for the full amount

- showing AR balance (how much I owe at the moment) to reflect the total - withholding.

In some countries you want to record the withholding impact only at time of payment, and in such case you can use the out of the box Withholding tax groups out of the box functionality
K_G 130 on at

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RE: Witholding tax on customer payment.

I don't see how this will work as an invoice for £100 + £20 (VAT) - £15 (VAT) will show that the customer owes you £105. That is not how withholding tax works. The customer should owe you £120, but doesn't pay you £120. That's the whole point. The method suggested here would not display this information in a report.
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ZvikaR 89 on at

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RE: Witholding tax on customer payment.

Haris - if you use my method of negative VAT code, there are many simple ways in the VAT module to report

For example - by filtering on "posted VAT" form by that "withholding" tax code or by linking the VAT code of "withholding tax" to its own "VAT settlement group", and then you can run the "VAT payment report" to see all transactions that involved withholding (both origin amount and calculated withholding)
Harisgillani 291 on at

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RE: Witholding tax on customer payment.

Hi Lally,

The solution given by Ludwig ReinHard and Zvika Rimalt will both work but you can not view the withholding tax transaction on withholding tax transaction report.

Regards

Haris Gillani
lally 19,790 on at

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RE: Witholding tax on customer payment.

[quote user="Ludwig Reinhard"]There's the dynamics ideas site. Would be great if you could post this idea there.[/quote]

Hi Ludwig ,

What is the use of dynamics ideas site and how it is differ from Dynamics community portal ?
lally 19,790 on at

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RE: Witholding tax on customer payment.

Hi Harisgillani ,

Could you please share the solution to address ?
Ludwig Reinhard Microsoft Employee on at

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RE: Witholding tax on customer payment.

Hi Haris Gillani,

There's the dynamics ideas site. Would be great if you could post this idea there.

Many thanks and best regards

Ludwig
Harisgillani 291 on at

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RE: Witholding tax on customer payment.

Hi Ludwig Reinhard & Avika Rimalt,

Thanks you to both, yours suggestion are helpful :) . But with this i cant see record of withholding tax in withholding tax transactions reports as my understanding AX just cater the vendor withhold sale tax :(

Regards

Haris Gillani
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ZvikaR 89 on at

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RE: Witholding tax on customer payment.

Just to clarify - the method I suggested will allow you to record withholding tax, when it is necessary for the INVOICE (and AR balances) to reflect the withholding.

The method Dr. Ludwig suggested is good if you want to record the withholding at the time of payment (but it will not be reflected on the invoice) - this is similar to how the out of the box AP withholding tax functionality works.
lally 19,790 on at

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RE: Witholding tax on customer payment.

Hi Zvika ,

Please explain the set up with some screen shots as i have also the same requirement to one of our customer .