How do I record or show Withholding Tax on Sale Invoice? (Example: My company charge service $ 100 from Customer and customer withhold $15 for tax agency)

Hey there, Tey.

I'd be glad to provide you the step-by-step process in recording the customer's withholding tax via QuickBooks Online.

To record this, you'll need to create a withholding tax item and set up an expense account to track the charges.

Step 1: Set up a withholding tax expense account:

1. From the Gear menu, select Chart of Accounts.
2. Select New.
3. From Account Type drop-down, select Other Expense.
4. From Detail Type drop-down, select Other Miscellaneous Expense.
5. Name the account "Withholding Tax Expense," then Save.

Step 2: Set up a withholding tax expense item:

1. From the Gear menu, select Products and Services.
2. Select New, then choose Service.
3. Name the item "Withholding Tax."
4. From Income account drop-down, select the withholding tax expense account that you’ve just created.
5. Save and close.

You can go through this article for the other steps (proceed to Step 3): How do I record tax withheld by my customer?

I'd suggest visiting the links below. This will provide you steps on how to record multiple, partial, and joint invoice payments. Also, this will give you insights on how to manage bank charges in QuickBooks Online:

Record bank charges when receiving payment from customer

Record invoice payments in QuickBooks Online

Please let me know if you have any other questions. I'm always here to help and provide you additional assistance. You have a wonderful day!

Thank you so much Rose for your information. 

I'm glad to hear this worked for you, Tey.

Know that you can always visit our Help Articles page for QuickBooks Online in case you need some reference for your future tasks.

The Community is always in your corner if you ever need assistance again in the future. Take care!

Hi I tried following the instructions but I cant find  the "other miscellaneous expense" in the detail type drop down, should I just select "other expenses" in the options? Thank You.

Thanks for joining us here, C97!

Yes, you can use the Other Expenses account. However, it's best to seek some help from your account so they can better guide you on setting it up.

In addition, here's how to set up tax in QuickBooks Online. You can check that link for the steps in setting up QuickBooks for GST.

Comment again if you have other questions. Take care!