Withholdings and fees on virtual wallets: What should I keep in mind when making a sale?
Are you selling through a virtual wallet and are you running into concepts you don’t understand? Don’t worry, we’ll explain it to you simply and with examples!
On the one hand, there are costs, which correspond to the fees that wallets charge for the service you use to collect payments from your customers.
On the other hand, you have to consider another fundamental concept that often arises in every virtual transaction. Every time you make a sale through a digital wallet, national or provincial tax authorities may apply withholdings and/or taxes based on your tax status.
What is the difference between perception and retention?
In short, withholdings and collections are not the same thing, but they are concepts that will appear in the transactions you carry out as a seller. In both cases, they are tools available to the National and/or Provincial Tax Authorities to expedite tax collection.
As tax collection agents for the Provincial Tax Authorities whether by QR code or transfer to your CVU.
The main difference between perception and retention is:
- You’ll see this reflected in the invoice issues monthly for the service.
- While withholdings are applied when your collections for sales of goods and services are credited to your CVU.
These withholdings and collections do not represent an additional cost to your transactions; instead, you can apply them as a balance toward your tax payments, provided you are registered as a local taxpayer in the corresponding jurisdiction or under the Multilateral Agreement for Gross Income.
Therefore, when your payment for the sale of your product or service is finalized, is obliged to withhold a certain amount (withholding) of money at the time of crediting the money to your virtual payment account.
