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July 14, 2020
Question

Can I input leasing income with 12% VAT less 5% withholding tax? How do I do this?

  • July 14, 2020
  • 1 reply
  • 0 views
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1 reply

AlcaeusF
Level 14
July 14, 2020

Welcome to the Community, @Lani Dy.

 

Let me provide some information about your income concern in QuickBooks Online.

 

If you're referring to making withholding deduction on an invoice, you'll need to set up an expense account and item. To create a withholding tax expense account:

 

  1. Click the Gear icon in the upper-right corner.
  2. Select Chart of Accounts.
  3. Select New.
  4. From Account Type drop-down, select Other Expense.
  5. From Detail Type drop-down, select Other Miscellaneous Expense
  6. Name the account "Withholding Tax Expense," then Save.

For the withholding tax expense item, please follow these steps:

 

  1. Click the Gear icon in the upper-right corner.
  2. Select Products and Services.
  3. Select New, then choose Service.
  4. Name the item "Withholding Tax." 
  5. From Income account drop-down, select the withholding tax expense account that you’ve just created.
  6. Save and close.

Additionally, here are some helpful references that you can visit for more information about withholding tax deduction, as well as recording total daily sales and customizing income transactions:

 

I appreciate you for taking the time to visit us here today, and I look forward to your response.