“When waiting gives you joy, that wasn’t much of a wait at all”
Wait we did, with bated breath to write this post! In this post we’d be introducing to you a brand new addition “Withholding Tax” to Zoho Invoice & Zoho Books. We believe that most small business users will benefit from this feature at some point in time. Come along as we give you the low-down on this feature.
What is withholding tax?
In some cases your customers may need to withhold the tax due for an invoice. They would pay the tax to the tax authorities and send you the receipt of payment. Once you receive the receipt, you can deduct the withholding tax amount from your tax liability.
For instance, when Jorge, a Mexican business owner sells in the US, he qualifies for the 10% tax-withholding treaty rate between Mexico and the United States. 10% of the invoice amount will be withheld by Jorge’s customer and will be paid to the IRS on behalf of Jorge.
Before withholding taxes in Zoho Invoice:
When you didn’t have the option to record a withholding tax, you may have made a negative tax such that it is deducted from the total payment expected from the customer. This obviously wasn’t the most straightforward way of dealing with withholding taxes.
Withholding taxes are in:
You’ll find the entire process to be much simpler. While you record a payment, you’ll be asked the question if the tax has been withheld or not. If you select yes, you’ll be shown the option to record the amount withheld.
This is just a precursor to a host of fascinating additions coming to Zoho Invoice and Zoho Books very soon. Right when you are enjoying this addition, we are done and dusted on the next. We’ll be back with that soon. In the meantime, keep up with what’s making news in Zoho Invoice and Zoho Books via Twitter and Facebook.