How do I handle a tax deduction?

CorneCorne Member Posts: 3

We do some work through an agency. We invoice them, but they deduct tax and thus pay less than the invoice amount. How do I handle the transaction in my accounting transactions?

Comments

  • AlexiaAlexia Member Posts: 3,314 ✭✭✭✭

    Hi, @Corne.

    Tax questions are always sensitive, and we can't offer much advice on how to handle them best, so I recommend talking to an accountant.

    You can add a discount to your invoice after it's paid, to make sure that the amount of the payment equals the amount on the invoice, by adding a line item with a negative price. That being said, I'm hesitant to tell you to do this before knowing what are the implications on the taxes for your business on that deduction.

  • CorneCorne Member Posts: 3

    Thanks, Alexia. Sounds like the most straight forward plan for now.

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