Applies to Product - Dynamics 365 Project Operations
What’s happening?
When generating the project invoice proposal from Project operations nonstock, the draft document within Finance and Operations does not have fields for withholding tax group or withholding item tax group.
Reason:
The omission of these fields on the document prohibits the ability to apply withholding tax before posting. It has been identified that this is an intended behavior of the application, particularly in the context of specific countries where withholding tax is applicable.
Resolution:
It was mentioned that in some countries like UK, VAT is applicable to services, while withholding tax generally pertains to income, interest, and royalties. Therefore, for a Project Proposal Invoice, withholding tax is not applicable.
In case there are business requirements or other countries requirements that need to add these fields in project invoice proposal, vote the following my idea in Microsoft ideas portal and submit feedback regarding the requirement. It will be evaluated by feature teams based on the number of customer votes. This feedback may influence future product updates if there is sufficient demand from customers or partners.