Overview | Papertracc Docs

Tax profile setup and maintenance.

Tax kinds

Every tax profile has a kind.

Kind	Use
`VAT`	Tax charged on sales and paid on purchases. Selectable as a line tax on invoices, bills, expenses and journals, and reported on the VAT return. Profiles created before `kind` existed are `VAT`.
`WHT`	Withholding tax, deducted from a payment. Applied when paying a vendor or when a customer pays you, not as a line tax.

The kind is set when the profile is created and cannot be changed afterwards.

Withholding tax profiles

For a WHT profile the two account fields have a fixed meaning:

output_account_id is the withholding tax payable account, a liability account. It is credited when you withhold tax from a vendor and is the amount you owe the tax authority.
input_account_id is the withholding tax receivable account, an asset account. It is debited when a customer withholds tax from your payment and is the credit you hold against your own tax.

deduct_on controls when the tax is deducted. PAYMENT is the default and the only value currently posted. BILL is reserved.

withholding_basis controls what the rate applies to when a payment or receipt does not state its own base.

Basis	Base used
`EXCL_VAT` (default)	The VAT-exclusive share of the amount being settled.
`INCL_VAT`	The full amount being settled.

Both deduct_on and withholding_basis can be changed later, on withholding tax profiles only. Sending either on an update to a VAT profile is rejected.

{
  "code": "WHT5",
  "name": "WHT 5%",
  "rate": 5,
  "kind": "WHT",
  "deduct_on": "PAYMENT",
  "withholding_basis": "EXCL_VAT",
  "input_account_id": "b85a9785-fbbd-4858-b9cd-c79ab926e70e",
  "output_account_id": "2b0d1461-e52e-4a1a-a69c-11801431c2c9"
}

Withholding tax is reported on the Withholding Tax Schedule, separate from the VAT return.