Set up withholding tax in the Italian version
For purchases subject to withholding tax, set up the withholding tax code and assign it to the vendor. You can calculate and review withholding amounts on the purchase invoice before posting. The payment workflow creates the withholding tax entries when you post the payment.
Steps to set up withholding tax codes
[!INCLUDE [open-search](../../includes/open-search.md)], enter Withholding Tax Codes, and then choose the related link.
On the Withholding Tax Codes page, choose New, and enter the code, tax details, and Withholding Taxes Payable Acc. [!INCLUDE [tooltip-inline-tip_md](../../includes/tooltip-inline-tip_md.md)]
To add lines to the withholding tax code, choose the Withhold Code Lines action.
Enter Starting Date, Withholding Tax %, and Taxable Base % for each applicable rate.
Repeat these steps for additional codes.
Set up withholding tax for vendors
[!INCLUDE [open-search](../../includes/open-search.md)], enter Vendors, and then choose the related link.
Open the vendor card.
On the Free Lance Fee FastTab, select Withholding Tax Code. Review the residency, individual-person, and contribution details that apply to the vendor.
Calculate withholding tax for purchase invoices
[!INCLUDE [open-search](../../includes/open-search.md)], enter Purchase Invoices, and then choose the related link.
Open the relevant purchase invoice.
Choose the Withhold Taxes-Soc. Sec. action.
In the Withh. Taxes-Contribution Card page, review the information in the various fields, and make sure that the Withholding Tax Code field specifies the right code for the vendor.
To calculate the withholding tax amount before posting, choose the Calculate action.
Make a vendor payment
[!INCLUDE [open-search](../../includes/open-search.md)], enter Payment Journals, and then choose the related link.
Create a payment journal line with Document Type set to Payment, Account Type set to Vendor, and the vendor in Account No. Enter the payment details and select the invoice to apply the payment to.
Choose the Withh.Tax-Soc.Sec. action, and review the withholding tax and contribution amounts.
- Confirm the calculation. Review the adjusted vendor payment line and the generated withholding tax lines before you post.
- Choose the Post action.
Hinweis
The generated withholding tax line contains the withholding amount. The original vendor payment line is adjusted for withholding and applicable contributions.