A withholding tax (retention) is an income tax amount your business customer retains on your behalf. The business customer then pays this tax amount to the government directly. This tax amount is deducted from the total amount the customer pays you. Withholding tax may have different names in different countries. Quaderno supports any withholding tax required on an invoice.
The most common use case for invoices is IRPF in Spain.
If you have to collect IRPF in Spain, you may have to apply two taxes to each invoice: VAT 21% and personal income tax -15%.
With Quaderno you can easily deduct IRPF on your invoices. The first thing you should do is check if you have the IRPF tax rate configured in your account.
If you need to add it to your Tax Rates page, do not hesitate to let us know and we will add it to your account as soon as possible.
Quaderno supports IRPF for manual invoices and one-off charges. As Quaderno Checkout isn't optimized to apply IRPF we don't recommend using checkout links with IRPF.
To apply IRPF in an invoice, follow the process described in Create an invoice:
1. On the invoices page, and click
+ Create invoicein the top right.
2. Fill out the Basic Data section.
3. Fill out the Items section
Set default taxyou will see an option Additional tax rate. Select the IRPF rate.
4. Fill out the Other data section
5. Scroll to the bottom and hit
Save changes. You’re done!
Can I apply IRPF directly in Quaderno Checkout?
Our checkout was designed for online sellers. When you're an online seller, you do not know if the person buying from you is buying as an individual or as self-employed. Quaderno Checkout isn't optimized for that case where you may need to apply IRPF. We support IRPF for manual invoices and one-off charges, but we wouldn't recommend trying to use checkout links with IRPF. One option would be to see if you could sell your products online under a "epígrafe empresarial". This way you will not have to apply personal income tax on your sales and you greatly simplify your billing.
Can I add the tax rate IRPF manually to the Custom Rate Page in my account?
We are modifying this functionality to make it easier to use and avoid errors, and at the moment it is not possible to create new custom taxes through the interface. In the meantime, if you need to add a specific custom tax, do not hesitate to let us know and we will add it to your account as soon as possible.