Possibility of using both net and gross base types in withholding tax table

[Former Member]

Hi experts,

We have the following AP Invoice scenario and we wish to apply two withholding taxes based on the gross and net amounts.

Net amount:: 400,000

Value Added Tax: 80,000

Gross amount: 480,000

We wish to apply a 4% withholding tax on the gross amount (480,000) and 1% withholding tax on the net amount (400,000).

We created two withholding tax codes:

1.) Net 1%

2.) Gross 4%

But when we apply this to the invoice, we are receiving an error at the Withholding Tax Table window:

"Selected base type should be similar in all rows [A/P Invoice - Withholding Tax Data - Base Type][line: 2] [Message 439-80]"

Please see a screenshot of the window through the link:

http://www.mediafire.com/?ztyyuctgddf4u5s

Is it a system limitation?

[Former Member · Accepted solution]

Hi,

Have you tried to combine both tax by one formula? Such as 5% for the base + 4% for the VAT.

Thanks,

Gordon

[Former Member · Accepted solution]

Hi Gordon,

I tried your suggestion and it works. But honestly I cannot explain it.

Can you explain how you thought of this?

[Former Member · Accepted solution]

System will only accept one formula for W-Tax. That is why I suggest you. The result is the same, isn't it?

[Former Member · Accepted solution]

Hi Gordon

Yes it works, thank you.