Withholding Tax Invoice Template provides a convenient method to document a request for payment that must exclude any taxes that would normally owed. Normally, this will be used for amounts due that are not usually a part of an Employee’s payroll or when a Vendor has indicated that they shall assume the responsibility of taxes. While the Payer will not be required to pay the due tax, it must be documented. Oftentimes, the Invoice Issuer will have additional paperwork to fill out (with the relevant tax entity) however, when a request for payment must be issued, it generally recommended to provide documentation for some basic information. Thus, it is suggested that all areas of this paperwork be completed, that any attachments be cited where appropriate, and that all the information entered is accurate.
How to Write in PDF and MS Word
Download: Adobe PDF & Microsoft Word (.docx)
Step 1 – Download The Paperwork On This Page To Issue A Withholding Tax Invoice
The paperwork on this page can be downloaded as a “PDF” file or “Word” file. Use the buttons presented along with the sample image on this page to perform this action. You may also access the necessary paperwork with the links in this section.
Step 2 – Introduce Your Business As the Sender
Your first obligation to this invoice will be to identify the Company behind the request being made. Thus, select the first field on this page, delete the “Company Name” text it contains, then furnish the full operating name of the Company issuing this document to its Recipient. 
The series of lines that begin this invoice also refer directly to its Sender. Locate the first of these (under the text box you completed), then identify yourself or an alternate contact by typing the appropriate “Name” directly onto this line. Note, the Party “Name” you record here will be expected to correspond with the Invoice Recipient on behalf of the Issuing Company if or when necessary. The mailing address is also anticipated by this area. Thus, enter it using the blank lines immediately following the Contact Name. The “Street Address” line along with the “City, State, Country” line seek the two standard address line in the Invoicing Company’s mailing address while the “Zip Code” will require an entry of the appropriate postal code. Furnish both the Invoicing Company’s “Phone” and “E-Mail” information as the contents of the next two empty lines.
Step 3 – Assign Invoice Documentation For The Withholding
The second area that must be satisfied with content is set to deliver some important filing information to the Client. The “Invoice #” line requires an I.D. number (alpha-numeric) that will not repeat itself in the Invoicing Company’s filing system presented. Input this detail for the benefit of the Client’s paperwork. Keep in mind this number may also be used as part of the Client’s taxes (when filed) so make sure this document number is accurately produced as it appears in the Invoicing Company’s accounting system. 
The calendar “Date” when this document is developed and completed is often used as the effective “Date.” Present this in writing to the Recipient as a month, two-digit calendar day, and two or four-digit year on the blank space to the right of the document number you reported.
Step 4 – Produce The Tax Withholding Client’s Billing Information
After identifying the Invoicing Company as well as the document information required to file this correspondence correctly, a solid display must be made of the Tax-Withholding Client. This is the entity that will purchase the services or products listed in this invoice and is either tax-exempt or will pay the owed taxes separately of their own accord. The “Name” of this Client is needed on the first line after the “Bill To” title. 
Proceed to the second, third, and fourth blank lines after the “Bill To” title and enter the Tax-Withholding Client’s “Street Address,” this entity’s “City, State, Country,” and lastly the “Zip Code.” This address must be verified by the Client since he or she may need it to support the tax withholding status they hold.
Step 5 – Documentation Of The Services And Products Must Be Furnished
The table making up the body of this page contains one row with two columns that we must use to display the specifics of the Invoicing Company services, merchandise, or supplies that will be purchased. The table’s first field (“Description”) has reserved ample space for your report allowing the relevant agreement details, date(s) of service, or quantity of physical items being purchased can be presented as desired.
Step 6 – Deliver A Breakdown For The Total Accounting For Withheld Taxes
The “Amount” column will give an opportunity to present dollar value that must be paid. It will be assumed the Client will handle his or her own taxes as required. Begin with the “Amount” field by reporting the exact price of the Invoicing Company’s services and/or merchandise. Below “Amount,” the “Subtotal” field requires the sum of all dollar values entered above it. Perform this calculation then produce this report as requested. Now, while the “Tax” that will be withheld it must be reported as a discount so that, it will not be included in the payment. Calculate the appropriate “Tax” for the “Subtotal” then list it as the “Discount.” Make sure this is a dollar amount. Continue to the “Tax” field and enter the “Tax” that would normally be charged in the locality where the Invoicer’s services or products are sold. This figure must be calculated according to the tax regulations that relate to the “Subtotal” and the items listed in the “Description” field. For instance, in our example, the invoice is generated by a Michigan which in turn expects a %4.25 withholding tax on compensation made outside of the payroll system of a Business Entity (i.e. bonuses, gambling winnings, prizes, barters, etc.). Finalize the “Total” the Client must pay to the Invoicing Company for its services and goods by reproducing the “Subtotal” as the tax-free “Total” in the last field of this table.
Step 7 – Impose A Reasonable Payment Deadline
In most cases, the Seller of a product or Provider of service will expect payment in a reasonable amount of time and will assume the Client is gathering then sending the funds. If payment is not received after a certain number of “Days,” then it may be considered late. This dividing line on the calendar between an on-time payment and a late payment should be recorded on the blank line following the words “Payment Is Due…” 
Step 8 – Deliver Additional Tax-Related Or Relevant Information If Needed
Additional information for this invoice can be included even if a specific section has not called for it. Use the “Comments Or Special Instructions” lines provided at the bottom of the page to include such material. 
How to Write in MS Excel
Download: Microsoft Excel (.xlsx)
Step 1 – Use This Page To Download The Tax Withholding Invoice As A Spreadsheet
This site provides two items that enable a download of the Tax Withholding Invoice. Use the “Excel” button or the “MS Excel (.xlsx)” link above for this task.
Step 2 – Submit The Invoicing Company’s Formal Contact Information
Once this document is accessed locate then select cell A1. This field requires that the image used by the Business Issuing this paperwork is inserted into this field. Perform this function using the appropriate ribbon option (i.e. “Insert” then “Illustrations”). 
Cell A2 is reserved for the legal “Company Name” of the Company issuing this paperwork. Report this identity exactly as it appears with the state where it operates. 
Now, a Contact who can represent the Issuing Company’s interests with this paperwork must be recorded (by “Name”) in cell A3. Cell A4 (“Street Address”) and cell A5 (“City, State, Country”) requires the mailing address for the Business generating this invoice with the intention of receiving due payment. The postal code that must be presented with this mailing address is needed in cell A6 (“Zip Code”). It is considered both wise and customary to present the current “E-Mail” and “Phone” number monitored by the Issuing Company.
Step 3 – Attach Definitive Filing Material To This Purchase
The Client this invoice is directed to will likely need some basic information that can be used to document this purchase in his or her accounting system and tax files. The “invoice #” label refers to the document number that can be used primarily for this purpose. This cannot be a number that duplicates itself in the Issuer’s files. A corresponding “Date” for this invoice is already assigned in cell H4 as that displayed by your desktop calendar, however, you can redefine this “Date” at will by editing the current presentation.
Step 4 – Furnish The Tax Withholding Client’s Identity And Official Invoice
The next subject matter that must be reported on is the billing information the Customer or Client has indicated should be used for this paperwork. The Entity that requires taxes withheld from this total will need to be recorded as the Receiver of this paperwork. Cell A11 where the “Name” label is displayed under the “Bill To” section heading is held to receive the “Name” of the Customer or Client expected to pay the invoice amount. 
Three fields following the “Name” have been supplied in cell A12, cell A13, and cell A14 so the Paying Customer or Client’s billing address can be presented accordingly.
Step 5 – Deliver A Record Of The Invoicing Company’s Billable Time Or Products
A full report will be needed to document what is being paid for by the Customer. Cell A17 of the spreadsheet shall receive the “Description” of the products and services concerned as you type it directly into this field. 
Step 6 – Document The Withheld Tax And Total Amount Owed
Cell H17 of the row you are working on seeks the corresponding prices or costs to the services and products that were listed to its left. The “Amount” (cell H17) field will accept multiple entries or a single one according to your preferences. Produce the “Subtotal” applying to this invoice by adding the numbers you entered in the previous cell to a single sum. The result of this calculation is expected in cell H18. The discounted taxes should be calculated based on the “Subtotal” and supplied in cell H19. This “Discount” must be the exact amount that would normally be the sales or service “Tax” the Customer would pay.
The “Tax” that was calculated must also be reported in cell H20. Reproduce the “Subtotal” in cell H21 as the “Total.” Since the “Discount” will remove the “Tax” expected, only the “Subtotal” will be owed.
Step 7 – Produce A Time Limit For Payment
Cell A22 supplies the wording necessary to place a time limit on when payments can be submitted on time. The number of “Days” given to pay the “Total” should replace the bracketed symbol attached to the phrase “Payment Is Due In…” 
Step 8 – Discuss Additional Tax Or Invoice Information If Desired
Cell A23 of the spreadsheet holds a basic statement (“Comments Or Special Instructions”) calling attention to whatever material you list to this field. If there are no additional topics to discuss, you may leave this field unattended. 
