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Accounting
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1CBMS

We have sales VAT, purchase VAT and withholding tax on some services. How do we set these up correctly so the tax reports are right?

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1CBMS
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Install your country localization first; it usually provides the base taxes and tax report. Then adjust them to your exact situation.

Good practice

  • Define separate taxes for sales and purchases, each linked to the correct tax account.
  • Use tax groups so invoices show taxes clearly to customers.
  • Model withholding tax as a negative tax or through payment-level withholding, depending on how it is collected in your country.
  • Use fiscal positions to replace taxes automatically for exports, exempt customers or special zones.
  • Set default taxes on products and categories to avoid manual mistakes.

Before go-live, issue test invoices for each scenario and compare the tax report with what your accountant expects to file.

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