Withholding tax at moment of payment, how to handle credits

Hi all,

We have a problem with Refunds related to AP invoices with Withholding tax. When creating a Credit through refund the Oracle note says: 

APP-SQLAP-97595: Please note that when you pay with a refund, Payables does not withhold taxes on invoices.

May I ask you how you handle those? We have an AP invoice for Italy, Italy is calcualting withholding tax when the payment is done, now we get the money back and we need a credit in our system.

(Maybe instead of a Refund, clear the "Customer" payment against an activity and enter the credit manually in AP and net it of against the payment of the AP invoice?)