Sales -> Invoices -> Overseas payment with tax deduction
Tarvi
Member Posts: 1
Hi
I am trying to figure out how to Record a Payment of an Sales Invoice I made to overseas company.
So I have made an Invoice to the company and they have paid this invoice. But they deducted the business tax portion in their country.
Both of the countries (my tax residency country and the country I offer service) have double taxation avoidance agreement in place, so in other words at the end of the tax year I can report the taxes already paid and this amount will become a tax credit.
How do I Record a Payment of Invoice in Wave? I changed the received amount to the tax deducted amount. This resulted as the invoice being paid only partially. And that does not seem right.
Should a receive the Invoice in full and make some other counter transaction or a journal transaction in the system?
Thank you in advance!
Comments
It sounds like you may want to partially write off this invoice, @Tarvi ! We have a handy guide here on how to do so; it instructs on how to write off a fully unpaid invoice, however you can still use the same method with the partial payment i.e. the deducted tax! Hope this helps! https://support.waveapps.com/hc/en-us/articles/115000031243