I believe @Ahmed_Saif is referring to what they call “Withholding Vat” where all or a portion of input VAT is withheld and paid to the Tax Authorities on behalf of the Supplier to reduce evasion.
I believe the Tax code function can be upgraded to allow a negative tax component line to record the payable (doesn’t work in Manager now).
Withholding VAT is not widespread. In my country, only corporate entities with some level of capital or operating in some industries are required to Withhold VAT.
Withholding VAT receivable and Withholding VAT payable are not to be offset.
Yes, that would have been useful here. Because using the VAT code itself to track the payables and receivables (which is received in the form of a withholding certificate) would require the use of two tax codes, 1 for input and another for output.