Withholding VAT Requirement

From 01-Oct-2015 we shall be required to withhold 6% of the VAT charged at the point of paying the supplier and

remit the tax deducted to RA (Revenue Authority)

Example

=====

Value on the invoice before VAT = 200

VAT at 16% = 32

Required withholding 6/16 *32 =12.

The double entry to be passed is as follows

==========================

Dr supplier liability control account

Cr 23408( VAT Withholding tax)

Thanks,

Soumya