- To determine the workflow for withholding tax on invoices.
- To determine how to apply a deduction on an invoice and have it appear credited.
- Clio Web App
This is a workaround process for firms that need to withhold tax and have it appear as a credit on an invoice.
Withheld tax is a deduction of a specific percentage from the total invoice.
- Ensure that tax is not being applied to the Invoice
- Manually calculate the percentage of tax you would like to "withhold"
- Locate and view the Bill that you want to apply a write off on
- Click the Credit notes sub-tab
- Click Add credit note
- Enter any applicable information
- Click Save credit note
- On your invoice you should now see a negative value next to Credit Note
- Next, go to Settings
- Select Billing
- Select Bill Themes
- Select or copy the Bill Theme you would like to modify
- Select Localizations
- Select Matter
- Scroll to Credit Note and change it to "Withheld Tax"
- Verify on invoice that deduction is visible with the desired localization
Please note that when you use that Bill Theme moving forward, Credit Notes will appear as "Withheld Tax."