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In the invoices I give to customer, should I also show the amount customer paid to the government as tax on my behalf?

In my country the customer can withhold a percentage of the payment that is due to me and pay it forward to the government directly as income tax. If my total annual income is below the national allowed threshold, the deduced money is refunded back to me by the government (not the customer).

So in a way the customer paid the full amount, but I am lost here, should I show the full amount in the invoice or just the money I actually received. Or is the question too specific and I should as a lawyer instead.

Answer 8582

You have not said where your country is…

But… I strongly suggest you get advice from an accountant on how you should draw an invoice.

I have never heard of a customer withholding tax that should be paid by the supplier. It might be true… But if you get this wrong, the tax man could find you liable for the unpaid tax. Then you pay up or go to jail.

Do you think the laws in your country/state will accept your question and answer here as sufficient care in paying tax? I doubt it.

Best of luck

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