We are on IFS Cloud.
IFS calculates Withholding Tax as a % of the NET supplier invoice amount (exclusive of ‘deductible’ VAT/Taxes).
However, Irish Revenue calculates the Withholding Tax on the GROSS supplier invoice amount (inclusive of ‘deductible’ VAT/Taxes).
e.g. supplier invoice = €100 + VAT (sales taxes) €13.5 = gross €113.50 to be paid. The Withholding tax rate is 20%. Irish Revenue calculate withholding tax amount of €113.50 x 20% = €22.70, i.e. pay the supplier €113.50 less €22.70 = €90.80 but IFS calculates €100 x 20% = €20 i.e. pay the supplier €113.50 less €20 = €93.50.
I do not appear to have any option/feature in IFS to change the withholding tax amount to automatically calculate based on the Gross amount.
I know that it is possible to manually modify the withholding tax amount in IFS when creating the payment proposal but ideally I want the system to calculate as required first time.
Any thoughts or similar experience in the Community?
