Invoices with Withholding
According to Article 94 of the Income Tax Law, tax on some purchases; It is paid by sharing between the buyer and the seller. Thus, the buyer does not pay the entire VAT to the seller. By declaring the withheld tax amount to the tax administration, both parties share the liability. Buying and selling transactions with withholding are carried out by regulating them on the invoice.
The Tax Administration prepares detailed rules on in which cases and how withholding will be applied, and reserves the right to change the withholding rates and the products and services to which withholding will be applied, and changes from time to time.
Click to review the Revenue Administration Withholding Implementation Communiqué.
Withholding Rates
Path: Control Panel > System > Parameters > Withholding Rates
- Withholding Rate
- Determine the withholding code selected for the withholding rate.
- Determine the tax code.
- Select which accounts the withholding will be recorded according to VAT rates.
Attention:Follow the notifications regarding the current withholding application. Withholding rates may vary depending on the types of products and services and the designated buyer types. Get help from your financial advisor or accountant when defining withholding rates or selecting them on purchase-sales invoices.
Attention: Withholding accounting code field is not a mandatory field. If defined, it reflects the receivable accounts to the defined accounting code.
When withholding definitions are selected in purchase and sales invoices, the withholding amount is calculated on a line basis by multiplying the withholding rate by the total VAT-Tax amount in the line.
The sum of the withholding amounts of the lines constitutes the total withholding on a document basis.
How are the Accounting Records of Withholding recorded?
The amount withheld according to accounting record VAT rates in purchase and sales invoices is recorded in the purchase and sales withholding accounting account.
It is sufficient to select the withholding account codes for purchase and sales transactions.
Withholding Accounting Rules for Return Invoices
When purchase and sales invoices are returned, the same transactions can be made with withholding. In some cases, refund invoices may arrive without the withholding amount or rate determined.
In this case, a case occurs where the withholding amount is not recorded in the accounting account. Create a special transaction category for an invoice received in this way and check the option to not recognize the withholding amount in this transaction category. In this option, the withholding amount is deducted from the VAT amount and recorded directly in the VAT account.
Attention: In transaction types 55 and 62, the option to not recognize the withholding amount is available.
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Invoice Parametric Definitions
Workcube Invoice Module allows you to calculate your invoices accurately, issue them on time and track your invoices effectively. It allows you to present your invoices to your customers online and allow them to track, pay or reject their invoices.
Sales Invoice
A sales invoice is a document showing that the goods or services offered by the seller have been sold to the buyer.
Purchase Invoice
Purchase Invoice is used to enter the invoices issued by the seller in return for the purchased goods or services.