Hi PROSPER MUNEMO ,

Thank you for your inquiry on how to classify withholding tax for both customers and suppliers in Sage Accounting.

To ensure withholding tax is correctly classified and appears in your financial statements, you would typically handle this through tax rates settings on your invoices. When you create a sales transaction like an invoice or a credit note in Sage Business Cloud Accounting, the available tax rates can be based on the address of the contact. This means you can apply the appropriate GST rate on each invoice line for customers, depending on their location.

For suppliers, you would record the withholding tax as part of the purchase transaction. If you need to record withholding tax that is not standard, you might need to create a custom tax rate that you can apply to transactions with those suppliers.

For specific steps on how to apply these settings, or if you need more detailed assistance, you can visit the given URLs for step-by-step guides on handling taxes and credit terms. Hope this helps! If you need further clarification, don't hesitate to ask. If this helps please mark it as verified :)

Warm Regards,
Erzsi