“When waiting gives you joy, that wasn’t much of a wait at all”
Wait we did, with bated breath to write this post! In this post we’d be introducing to you a brand new addition “Withholding Tax” to Zoho Invoice & Zoho Books. We believe that most small business users will benefit from this feature at some point in time. Come along as we give you the low-down on this feature.
What is withholding tax?
In some cases your customers may need to withhold the tax due for an invoice. They would pay the tax to the tax authorities and send you the receipt of payment. Once you receive the receipt, you can deduct the withholding tax amount from your tax liability.
For instance, when Jorge, a Mexican business owner sells in the US, he qualifies for the 10% tax-withholding treaty rate between Mexico and the United States. 10% of the invoice amount will be withheld by Jorge’s customer and will be paid to the IRS on behalf of Jorge.
Before withholding taxes in Zoho Invoice:
When you didn’t have the option to record a withholding tax, you may have made a negative tax such that it is deducted from the total payment expected from the customer. This obviously wasn’t the most straightforward way of dealing with withholding taxes.
Withholding taxes are in:
You’ll find the entire process to be much simpler. While you record a payment, you’ll be asked the question if the tax has been withheld or not. If you select yes, you’ll be shown the option to record the amount withheld.
This is just a precursor to a host of fascinating additions coming to Zoho Invoice and Zoho Books very soon. Right when you are enjoying this addition, we are done and dusted on the next. We’ll be back with that soon. In the meantime, keep up with what’s making news in Zoho Invoice and Zoho Books via Twitter and Facebook.
a good idea would be to add the option for witholding tax in the estimates, as in some countries that's compulsory and, anyway, the client is happy to see it before and not to have to calculate the tax itself
how do we create paid invoice , what i mean is like a store where you sell items where the customer pays on the counter . it is time consuming when we have to always convert drafts and open invoice to paid all the time. i would like to do it while creating a invoice it self
@Kesz, That's an awesome idea. We'll remember to add that to our list of prospective feature additions. Our product team will surely analyze the possibilities of incorporating this. We are all for making invoicing and accounting simpler for small business owners. Thanks for the suggestion and the good comments about us.
What would be great is if Zoho included a tax estimated payment for federal, state and social security. For example if a $1000 invoice is submitted, it will calculate what % needs to be deducted for federal, state and social security based on the users tax bracket which can be added in the settings page.Would be incredibly helpful for small business owners.Keep up the great work Zoho!Mike
Hi Katrina & JeffPartial payments for invoices will be available very soon in Zoho Invoice. Do follow us here for updates related to this.Thanks for posting your request here.-Deepa
Exactly Katrina. I've just been creating separate invoices which is a pain.
I have submitted the same wish-list item Katrina mentions. Can't wait to see this added to Invoice product, Zoho!Jeff
Great! I would like to see installment billing! For example if I create an invoice for 1000 but the client wants to pay $250 a month from the same invoice, they cannot. If they pay $250 I have to send them a separate paypal request and then manually update the invoice for the payment so the balance due shows $750. But if I resend that updated invoice (showing they paid $250 but still owe $750) so they can make another payment, the invoice still shows that they still owe $1000. I have to then send a separate paypal request. It would be AWESOME if you had installment billing and payment!
Katrina