Question

Supplier Tax Levy

  • 4 November 2019
  • 2 replies
  • 467 views

Userlevel 2
Badge +1

In IFS, how do I handle supplier invoices where we have received a notice of levy from the government where all payments owed to the supplier need to be remitted to the government. How can the invoice still be associated with the supplier (for 1099 purposes), but be remitted to the relevant taxing authority?

 


2 replies

Userlevel 6
Badge +10

Hi Amy,

Have you tried with 100% Withholding Tax (WHT) code? I assume you want to transfer the invoice to FullyPaid state and identify the invoice full amount as a tax obligation. 

Hope this is not a backup withholding scenario. Because, you have mentioned that, you need to recognize 100% tax amount from the invoice. I am curious to know the real business scenario.  

Now, I have a question for 1099 reporting.

How do you report 1099-Misc?

If you are using IFS tax ledger for 1099-Misc Reporting (I assume this is not a new news for you), you have to combine Zero WHT line for income recognition. 

 

 

 

 

 

Userlevel 4
Badge +6

I agree with Eranda, out of the box, 100% WHT is the only real way to handle to remit to tax authority but recognise as liability originally to supplier.

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