Glossary
Withholding tax
Withholding tax is a part of a payment that the payer holds back and sends to the tax authority on the recipient behalf.
What it means for a shop owner
It may apply to some services, fees or contracts. The payer gives you a certificate of what was withheld so you can offset it against your tax. Rules and rates differ widely between countries.
A worked example
A service invoice of 1000 has 5 percent withheld. The client pays you 950 and sends 50 to the authority.
Related
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The free plan: the whole shop for one branch, an offline cashier with stock, debts and accounting, with a daily limit on invoices, expenses and purchase orders. What it includes