Withholding Taxes on Invoices

Important:

The topics here cover withholding tax for NetSuite accounts without the SuiteTax feature enabled. If you're using an account with SuiteTax enabled, go to Withholding Taxes in SuiteTax.

Withholding tax isn't getting new features and reports in accounts without SuiteTax. Updates to the Withholding Tax SuiteApp now include only fixes for reported issues.

To record withholding taxes on an invoice:

1. Go to Transactions > Sales > Create Invoices.

2. Select the customer for this invoice. If the customer is from a nexus where withholding tax is used, the system reloads the form to display the withholding tax objects.

3. On the Items subtab, enter line items.

   1. To apply withholding tax to the total of the invoice, do the following:

      • On the Withholding Tax tab under Items, set the Applies To field to Total Amount.

      • In the Tax Code field, select the appropriate withholding tax code. You can also select a tax code in the Tax Code column of the Expenses and Items list.

   2. To apply withholding tax to individual items, do the following:

      • On the Withholding Tax tab under Items, set the Applies To field to Individual Line Items.

      • On the Items subtab, check the Apply WH Tax? box for each line item that you want to apply withholding tax to. In the Withholding Tax Code column, select the appropriate withholding tax code that will be applied to the item (if not already selected).

   3. To apply withholding tax to transaction discounts, the withholding tax point must be set to On Payment. Withholding tax won't apply to transaction discounts when the withholding tax point is set to On Accrual. The tax point is the point in time when withholding tax is recorded. For more information about setting up the tax point, see Setting Up Withholding Tax Preferences.

4. After entering line items, review the information about the Withholding Tax tab under Items to make sure the values are correct in the Base Amount and Tax Amount fields.

5. Enter other details required for this transaction.

6. Click Save.

Related Topics

• Withholding Taxes on Payment Acceptance
• Withholding Taxes on Cash Sales
• Recording Withholding Taxes on Transactions as a Seller
• Withholding Tax Overview
• Setting Up Withholding Tax
• Creating or Customizing Roles to Use Withholding Tax Features
• Setting Default Withholding Tax Codes
• Applying Withholding Taxes on Transactions as a Buyer
• Importing Withholding Tax Transactions
• Withholding Tax Reporting
• Withholding Tax Troubleshooting Guide
• Known Limitations of the Withholding Tax SuiteApp

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