Setting up and using withholding tax (WHT) on VAT

2 weeks ago
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2 minutes

This guide walks you through the step-by-step process of configuring Withholding Tax (WHT) (at 75% or 100%, depending on the case) directly in your Hsabati account.

How to proceed?

  1. Log in to your Hsabati account and click on the Settings button (top right of your screen).
  2. Click on the Finances tab.
  3. Enable the Withholding Tax option if it is not already activated—it will then appear in the finance elements list.
  4. Click on Add a Withholding Tax.
  5. Enter a clear name for your withholding tax (e.g., “20% Supplier Withholding Tax”).
  6. Specify the exact percentage to be applied (e.g., 20%).
  7. In your CRM, select the contact (client or supplier) affected by the withholding tax.
  8. In the contact’s profile, go to Advanced Options.
  9. Under the relevant section, link the withholding tax you created earlier.
    • Once linked, it will be automatically applied to all commercial transactions with this contact.
  10. When creating a new document (invoice, purchase order, etc.), select the client or supplier concerned.

Automatic Calculation of WHT

Once your Withholding Tax (WHT) is created, you must set its rate (e.g., 30%). This rate applies to the VAT amount on each invoice.

Example Calculation:

For an invoice of 5,000 DH with a VAT of 20% (1,000 DH), and a 30% WHT rate, the withholding tax amount is:

WHT= 1,000 DH × 30% = 333.33 DH

🔹 Summary:

  • Total Amount: 5,000 DH
  • VAT: 666.66 DH
  • WHT: 333.33 DH

Important Notes

  • Withholding tax does not apply to quotes.
  • WHT is calculated based on the VAT amount of your products or services.
  • If an invoice is paid in multiple installments, WHT will also be split accordingly.
  • If a payment is canceled, the corresponding WHT will be automatically removed.
  • WHT is not deducted directly from your cash flow.
  • Disabling WHT will not affect existing documents, but all new documents from the deactivation date will no longer include it.