I need to remove the line “Withholding tax” line from the theme.
I have changed many attributes on my theme. So, a little hints would be helpful.
Is the Withholding Tax applicable to the sale, if not , untick 
Yes, it is applicable.
But, showing the amount twice is confusing, I think.
The line “VAT (15%)” is sufficient.
The line “Withholding tax” tax is not necessary.
If Withholding Tax is applicable, then it needs to be shown as it maybe a different rate, say 10% instead of the 15%
VAT and withholding tax are two entirely separate things:
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VAT is a tax you are charging the customer on behalf of the government. The VAT is added to the subtotal of the invoice to obtain the total. The amount of VAT is posted to Tax payable as a liability. Eventually, you must remit the VAT to the government. See Create and use tax codes | Manager.
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Withholding tax is an amount your customer must withhold from its payment to you for the sales invoice. The customer remits the tax to the government, effectively paying your tax in advance. See this Guide: Account for withholding tax on sales invoices | Manager.
I get all this.
I just want to not show the line in the invoice.
Because, as you see, VAT & withholding tax is the same in amount.
I do not want to remove the withholding tax from the invoice.
What does it matter that the two amounts are the same? They are different things. If both are required by the tax authority, both must be on the invoice. Would you remove an inventory item because its price was the same as another inventory item? No.
I think you may be entering something incorrectly. Your Subtotal of 15,000 has a 15% VAT rate applied. But withholding tax is either an entered amount or a rate. If a rate, the amount is calculated on the Total, including other taxes. And the sales invoice shows the withholding tax percentage. Yours does not, so you must have entered it directly as an amount. Your equivalent withholding rate in your example is 13.0435%. I doubt your tax authority requires that withholding rate, because they are usually whole numbers. So how and why did you calculate 2,250 as the withholding amount?
Also, the sales invoice should show the balance due. Here is an example with an equivalent 10% withholding rate applied as an amount. The reduced balance due is shown clearly. Why does your invoice not show this?
Yes, I entered it as amount.
Because, my customer pay me only the invoice amount (excl. VAT).
And deduct only the VAT amount.
I discussed this problem here https://forum.manager.io/t/tax-paid-by-customer-to-authority/12336
The balance due line was removed from the theme.
But, now I see, it’s necessary here.
If your government customer is not paying VAT, why are you putting it on the invoice? Government customers are often exempt from taxes. In that case, you should not apply the VAT tax code to the line item.
The way you are recording things, your Tax payable liability account will keep building up, showing that you owe the government for VAT they have not paid to you as a customer. So to clear that account, you will be paying the government’s share of VAT tax, which they were apparently exempt from paying in the first place. And your records will show that they owe themselves the withholding tax. But they will never pay, so that asset account will also grow endlessly.
I don’t know the tax laws in your country, but it seems you are making the entire situation more complex than necessary. It seems the correct approach is simply not to charge VAT and forget about withholding.
I have a customer, a government office and who doesn’t pay the tax amount to us.
Instead, they paid the tax amount to the TAX authority and issue us a yearly certificate that says my sales tax amount on the invoice has been paid to the TAX authority.
I may submit that certificate to the TAX authority to adjust with the TAX Payable amount.
OK, thanks for the complete explanation. So your customer is not exempt. And withholding tax is the proper method. Usually, withholding tax is effectively a prepayment of a tax you owe, and the certificate would be used to reduce your own tax (most often income tax). In this case, the certificate will be used to reduce your VAT balance due.
If you are not required to withhold tax for other purposes, you might want to rename the various withholding-related accounts to make their purposes more obvious. Since you seem to have the skills to manipulate custom themes, you could also change the wording on the invoice from “Withholding tax” to “VAT deduction” or some other phrase the customer will recognize as meaning the amount they pay directly to the tax authority.
You get my point.
Now I need to know where in the theme should I change the phrase.
It is going to be one of the elements of the total.label array. In the plain theme look for this section of code:
<tr>
<td colspan="{{ table.columns | size | minus:1 }}" style="padding: 5px 10px; text-align: right{% if total.emphasis == true %}; font-weight: bold{% endif %}">{{ total.label }}</td>
<td style="border-left-width: 1px; white-space: nowrap; border-right-width: 1px; border-bottom-width: 1px; padding: 5px 10px; text-align: right{% if total.emphasis == true %}; font-weight: bold{% endif %}">{{ total.text }}</td>
</tr>
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