Applying Withholding Taxes on Transactions as a Buyer

Important:

This topic pertains to withholding tax in NetSuite accounts that do not have the SuiteTax feature enabled. If you are using a NetSuite account where the SuiteTax feature is enabled, go to Withholding Taxes in SuiteTax.

Withholding tax is no longer being updated for new features and reports in accounts that do not have the SuiteTax feature. All version upgrades of the Withholding Tax SuiteApp include fixes for reported issues only.

You can record withholding taxes as a buyer on creation of vendor bills or checks.

If your withholding tax setup has Tax Point = On Accrual, then when you save the bill, withholding tax amounts are automatically posted to appropriate general ledger accounts. See Withholding Taxes on Bills.
If your withholding tax setup has Tax Point = On Payment, then withholding tax is recognized when you pay the bill. See Withholding Taxes on Bill Payments and Withholding Taxes on Checks.

Important:

If Tax Point = On Payment, and if Available on Purchases is checked under Withholding Tax Setup, the system ensures that the withholding tax calculation matches the posted amounts in the general ledger by disabling the editing of the withholding tax vendor credits and their associated bills when payment has been applied. However, you can unapply, cancel or delete a bill payment to make the related withholding tax vendor credit and associated bill editable again. Note that when you delete a bill payment, the associated vendor credit to record withholding tax in the GL is also deleted. If Available on Purchases is NOT checked, the withholding tax vendor credits and the associated bills become editable, regardless if withholding tax has been associated with the transaction.

Related Topics