Recording Withholding Taxes on Transactions as a Seller

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Withholding tax is no longer being updated for new features and reports in accounts that do not have the SuiteTax feature.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 seller on invoice creation, on acceptance of payments, or on cash sales.

If your withholding tax setup has Tax Point =On Accrual, then withholding tax is recognized upon saving the invoice. See Withholding Taxes on Invoices.

Note:
The Withholding Tax SuiteApp does not support bulk processing of invoices. You must edit and save each invoice to trigger the calculation of withholding tax.
If your withholding tax setup has Tax Point =On Payment, then withholding tax is recognized when the customer pays the invoice, and on cash sale transactions. See Withholding Taxes on Payment Acceptance and Withholding Taxes on Cash Sales.

Important:

If Tax Point =On Payment, and if Available on Sales 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 credit memos and their associated invoices when payment has been applied. However, you can unapply, cancel or delete a payment to make the related withholding tax credit memo and the associated invoice editable again. Note that when you delete an invoice payment, the associated credit memo to record withholding tax in the GL is also deleted. If Available on Sales is NOT checked, the withholding tax credit memos and the associated invoices become editable, regardless if withholding tax has been associated with the transaction.

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