Withholding Taxes on Cash Sales
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Withholding tax is no longer being updated for new features and reports in accounts that do not have the SuiteTax feature.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.
To record withholding taxes on a cash sale:
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Go to Transactions > Sales > Enter Cash Sales.
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Select the customer for this cash sale. If the customer is from a nexus where withholding tax is used, the system reloads the form to display the withholding tax objects.
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Enter line items.
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To apply withholding tax to the total of the cash sale, do the following:
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On the Withholding Tax tab under Items, set the Applies To field to Total Amount.
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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 Items list.
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To apply withholding tax to individual items, do the following:
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On the Withholding Tax tab under Items, set the Applies To field to Individual Line Items.
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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).
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To apply withholding tax to transaction discounts, the withholding tax point must be set to On Payment. Withholding tax will not 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 on setting up the tax point, see Setting Up Withholding Tax Preferences.
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After entering line items, review the information on the Withholding Tax tab under Expenses and Items to make sure the values are correct in the Base Amount and Tax Amount fields.
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Enter other details required for this transaction.
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Click Save. The withholding tax amounts are automatically posted to the appropriate general ledger accounts. In the More Actions menu, click GL Impact to view the GL Impact page for this transaction.
Related Topics
- Withholding Taxes on Invoices
- Withholding Taxes on Payment Acceptance
- 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