Withholdings and E41 on purchases

When you buy from someone who isn’t registered as a taxpayer with the DGII, they can’t give you a tax receipt. In that case you issue it yourself: the purchase receipt (E41, or B11 in series B), and you withhold their ITBIS and, when it applies, ISR. This guide explains how to do it from a purchase order. Purchasing is available from the Pro plan; see the plans on Pricing.

Before you start

• The supplier must have a cédula (11 digits) on file. A company RNC (9 digits) won’t work.
• Check with the DGII that the person really isn’t registered as a taxpayer. If they are, ask for their invoice with an NCF.
• For the app to issue the receipt, your business must be issuing tax receipts (electronic invoicing active, or series B while you don’t have it yet) and have a valid E41 (or B11) sequence in Electronic invoicing › Sequences. See What is electronic invoicing and Contingency and series B NCF.
• The administrator (admin) and purchasing (procurement) roles can do it.

Record the purchase with withholdings

1. In Purchasing › New Order, choose the supplier with a cédula and add the products as on any order.
2. At the bottom you’ll see the switch Purchase from an informal supplier (purchase receipt E41/B11). Turn it on.
3. The app withholds 100% of the order’s ITBIS for you.
4. If you also withhold ISR, choose the ISR withholding type (for example 02 · Professional fees or 01 · Rent) and type the ISR withheld. The type and the amount go together, and the ISR can’t exceed the subtotal.
5. Check the summary: Total invoiced, ITBIS withheld (100 %), ISR withheld and Net payable to the supplier. That net amount is what you hand the person; what you withheld, you pay to the DGII.
6. Leave the Supplier NCF empty: the number comes from the receipt you are about to issue.
7. Press Create Purchase Order.

Important: if you type a B11 or E41 NCF in the supplier invoice, the app takes it as an informal purchase and asks for the supplier’s cédula.

Issue the purchase receipt (E41)

The receipt is issued once the order is Received (in full, or closed with missing items).

1. Receive the goods as usual in Receive Goods.
2. Open the order. The Purchase receipt section tells you it’s ready to issue.
3. Press Issue purchase receipt (E41).

The order shows the e-NCF issued and its DGII status. With series B, the app assigns the next B11 from your sequence.

From then on, the order’s NCF, its date, the ITBIS and the withholdings are fixed, and the order can no longer be cancelled. Withholdings also freeze when the order is marked as paid: if you need to change them, mark it as unpaid first.

What happens next

• The 606: the purchase goes in your 606 with the ITBIS and ISR withheld. A purchase with withholdings is reported by its payment date, so mark the order as paid; until then it stays out of the 606 with the warning Retention not paid yet (no payment date).
• Reports: in Reports › Withholdings, the What you withheld from suppliers part shows what you withheld this month: it’s the DGII’s money that you hold and must pay.

From Expenses too

If what you bought is a service or an expense rather than goods for your inventory, you can issue the E41 when you record the expense. There the app works out the 10% ISR on services by itself. See Expenses.

Tip: ask your accountant which ISR withholding type fits each case. The app does the math, but the tax decision is yours.

Related articles

• Suppliers and purchase orders
• What is electronic invoicing
• Expenses
• Tax reports 606, 607 and 608