On Dominican Republic we have to ways for handling income taxes related to professional services. One of the ways is to submit an invoice to the customer without mentioning Taxes just the charges them the customer will subtract a 10% of tax to the amount presented and will only pay me the 90%. After that the customer is responsible for paying the 10% tax to the government and I will report the income but will not pay taxes for it because the customer already did it for me. This style is very common for independent consultants who don't want the extra work of paying taxes monthly.
Here comes the question: How do I handle the previous situation on QuickBooks. I mean I want to create a US$1,000 Invoice that does not include Taxes. Them the customer will only pay me US$900 because he will retain the taxes. What should I do to report the payment on QuickBooks? Should I report an income of 1,000 and a Tax expense of
100 or there is any other way?