Applying retention taxes on an invoice

Quaderno supports any withholding tax required on an invoice. 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.

Retention taxes are negative taxes. For example, if you have to collect retentions in Spain (aka IRPF), you need to apply two taxes to each invoice: VAT 21% VAT and -15% retention tax.

Retention tax and 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 retention tax. We support retention tax for manual invoices and one-off charges, but we wouldn't recommend trying to use checkout links with retention tax.

Please check with your accountant if there’s some alternative to sell your products without retention tax. This way you will greatly simplify your billing.

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