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A type of tax code should be possible in which the tax is subtracted from, rather than added to, the invoiced amount for that line item.

Rationale: Many countries require that a foreign supplier's invoice be subject to withheld tax if the supplier doesn't have a satisfactory tax treaty entitlement.

Example:

We use a reverse-invoice process for our Australian supplier to record payments due to them based on our activity. This activity often attracts a royalty fee that we must pay.

The UK requires us to withhold 5% of this royalty fee, and pay this over HMRC quarterly.

To create the correct Bill, I enter a line on the "Bill" line showing the total royalty due, and then another line for the tax = a number calculated by typing an arithmetic formula such as

-200*.05

This line is now a negative number allocated to a withholding tax account. The negative number reduces the total on Bill.

This is clumsy manual process prone to errors. I would like to be able to automate the calculation and the allocation of withheld tax to a specified account and the subtraction of this tax -- similar to the way VAT is automatically calculated, allocated to the VAT account, and added to total.

I am aware that many countries have similar tax requirements. It would be good to enable a way for businesses to create withholding tax codes for their particular situation.