Can Tax Rules be triggered for Payment Entries or only for Invoices?

ERPNext Accounting
1

When our company sells to some large companies they are required to withhold some percentage of Income Tax and VAT.

Revenue service regulations do not let us specify those amounts on our invoice to them.

Instead, when we receive our copy of their withholding voucher, we are able to account for those deductions directly in the Payment Entry by selecting an appropriate Sales Taxes and Charges Template.

Ideally, we should not have to select the Sales Taxes and Charges Template, but have it selected automatically according to a Tax Rule.

Question:
Can a Payment Entry be configured to select a Sales Taxes and Charges Template according to a Tax Rule?

2

Out of the box, you could see if the Tax Withholding Category doctype will work. It sounds like a similar use case.

3

Yes. I did look into withholding taxes but, as I said, revenue service regulations do not allow those amounts to appear on invoices or in invoice calculations.

Our issue is that we need to account for withheld amounts at payment time, not at invoice time.

4

Yep, I understand that you’re talking about Payment Entries. I thought Tax Withholdings are designed to work with Payment Entries (in at least some capacities, not sure about your use case).