How do I handle a tax deduction?
Corne
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?
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Corne
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
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.
Thanks, Alexia. Sounds like the most straight forward plan for now.