1.1 Introduction

This topic explains the processing of tax to be paid to the Government due to the transactions that user enter into with your customers. This type of tax is processed as an Expense type of tax, whereby user book the tax component into a Tax Expense account, to be paid to the Government.

User can also process tax as a Withholding type of tax, where user debit the customer account, and credit the tax component into a Tax Payable account (to be paid to the Government on the customer’s behalf).

Depending on the laws in your country, user can define tax as an expense type of tax or a withholding type of tax