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Tax Rule for Foreign Suppliers to calculate 5%Tax

Received Response
edited Oct 24, 2020 9:06PM in Tax & Global 10 comments


Tax Rule for Foreign Suppliers to calculate 5%Tax


Hi, Gents 


I Have a requirement that the business users need a tax rate = 5%  for Foreign suppliers, as the supplier did not pay this tax and the company will pay it to the tax authority, the entries should generate like below :

DR: Expense 1000
DR: self-assessment ( VAT ) 50
DR: TAX ( Withholding ) 50
CR: Liability 1100
How can I handle this case in spite of we have been created tax rules for registered suppliers and not registered suppliers and the foreign suppliers the system considers them under not registered and calculate self-assessment tax?

Noted: the client didn't need withholding tax functionality as the entires not matched his business and the mentioned case as he will pay this tax On behalf of the supplier. 

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