This feature comes with certain plans. If it is not in your menu, it is not in your business's plan.
Does this tax apply to you?
Under Books open Withholding tax. If your books have no non-resident supplier and no withholding yet, you see this screen, which explains who it catches, when it is paid over and how much it is. If you pay no non-resident, there is nothing for you to do here.
Record the supplier's residency
Open the Supplier residency tab and press Set residency beside the supplier. In Residency (1) choose Resident or Non-resident. For a non-resident, choose the Default payment type (2), which sets the rate. Then press Save. This needs posting permission.
Residency is an answer you give. Books never works it out from an address, a VAT number or a currency. Until you answer, nothing is withheld and the supplier stays on the list.
For a tax treaty, enter the Treaty rate and, beside it, the treaty and the tax residence certificate. A treaty can only reduce the rate, never raise it.
Review the rate card
The Rate card tab lists each payment type with its rate and the source of the number. These are your company's settings: if your adviser says otherwise, press Edit and name the source. You can also add a New payment type. Changing a rate never touches a withholding already taken.
Post the bill, then pay it
Post the supplier's bill as usual, and it is booked at its gross total. The withholding does not arise on the bill date but on the day you pay. If a non-resident supplier has no payment type, Books refuses to post the bill until you set it on the Supplier residency tab.
To pay, press Record payment for the full amount. The withholding is worked out on the bill value before VAT, and Books splits the entry: the net from the bank, and the withheld part into Withholding tax payable. A part payment takes its share of the withholding.
| Account | Debit | Credit |
|---|---|---|
| Accounts payable | 10,000.00 | |
| Bank | 9,500.00 | |
| Withholding tax payable | 500.00 |
The payment screen does not show the withheld amount, so transfer only the net to the supplier, not the full amount. You will find the withholding for each payment on the Working tab. A payment that withheld tax cannot take further bills.
Review the monthly return
On the Monthly return tab, choose the month under For or press Latest closed month. You will see what was withheld, the base and the due date, then:
- Needs an answer: suppliers or bills where nothing was withheld because a question is unanswered.
- Tied to the books: compares the return with the withholding account. You want the chip The return agrees with the account.
- The supplier table: open any row to see the payments behind it.
- Supplier residency
- Payment
- Monthly return
- Pay ZATCA
File and pay ZATCA
Books produces the figures and the working behind them, nothing more. Filing and paying happen on ZATCA's own portal, within the first ten days of the month after the supplier was paid, as the screen states. Once paid, record it with an ordinary payment voucher out of Withholding tax payable.
The annual return and the certificate for the beneficiary are not produced by Books yet.
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