# withheld tax in invoices?

Derek Atkins warlord at MIT.EDU
Wed Oct 4 15:44:08 EDT 2006

```I'm afraid that GnuCash just doesn't support this.

-derek

Quoting h0mer <jose at vocalsakti.com>:

>
> hi,  I have a situation I can't figure out how to model: When I charge my
> clients (and consequently create invoices), I have to include two taxes: One
> is a sort of VAT, which is easily set as a percentage through a tax table,
> and automatically calculated in the invoice.
>
> The other tax, however, is trickier. This is a withheld tax, since it is an
> amount that my customer has to keep from paying me and pay it to the
> government. I cant figure out how to associate this in order to have
> automatically calculated, since through the tax table I can't seem to asign
> 'negative' percentages, as in 'substract' from the total instead of adding.
> an example:
>
> Cost of service: \$100
> VAT: 16% <-- Paid by myself
> Withheld tax: %10 <-- Paid by my customer
>
> Tax table: VAT, 16%
>
> I create an invoice, for \$100. Taxable, tax not included, tax table Vat, so
> tax is now \$16. Invoice total: \$116. This is ok but half right. What I need
> next is some sort other tax table, but 'withheld' or 'deductible', so I can
> select it and just like it knows the VAT is %16 added, it should know this
> is %10 percent substracted. Sort of like this:
>
> Service, \$100. VAT \$16. Withheld \$10. Total for invoice: \$106. (cost + vat -
> withheld).
>
> the deduction as a different process, but it is effectively cumbersome to
> manage by hand; besides, even though I create an invoice for \$100 plus Vat,
> the amount actually received is \$106 instead of \$116 obviously, so when I
> process the payment, the difference results in that the invoice is never
> fully paid, so gnucash doesnt list it as such. I could also try setting the
> cost of the invoice to \$90, as in including already the withheld tax, but
> then, the VAT would be incorrectly calculated, as it should be \$100.
>
> Any ideas? I will really appreciate the help.
> --
> View this message in context:
> http://www.nabble.com/withheld-tax-in-invoices--tf2384579.html#a6646740
> Sent from the GnuCash - User mailing list archive at Nabble.com.
>
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>

--
Derek Atkins, SB '93 MIT EE, SM '95 MIT Media Laboratory
Member, MIT Student Information Processing Board  (SIPB)
URL: http://web.mit.edu/warlord/    PP-ASEL-IA     N1NWH
warlord at MIT.EDU                        PGP key available

```