Tax basis is net of retainage

This box applies when you are processing AP transactions with an associated Value Added Tax (VAT) code. Primarily, this applies to Australian and Canadian users. See additional information below.

Australia

The name of this box displays as Tax basis is net of retention. Check this box to withhold retention from the tax basis of AP transactions with an associated Value Added Tax (VAT) code. When you check this box, the system calculates the tax basis as the line amount minus retention. This enables you to track retainage Input Tax Credits (ITCs) separate from standard ITCs. See Tracking Retainage Input Tax Credits: Australia for more information.

Canada

The name of this box displays as Tax basis is net of holdback. Check this box to withhold holdback from the tax basis of AP transactions with an associated VAT code. When you check this box, the system calculates the tax basis as the line amount minus retainage. This enables you to track retainage Input Tax Credits (ITCs) separate from standard ITCs. See Tracking Holdback Input Tax Credits: Canada for more information.