Business · Calculator companion · By K Imports
Professional Services Withholding Tax: practical guide
This guide explains how to use the Count.ie professional services withholding tax. Calculate the 20% withholding excluding VAT and supplier cash received. Follow the inputs, method and worked example below, then compare your own scenario.
Guide written .
Open the Professional Services Withholding Tax calculatorWhat to prepare
- Gather supplier quotes, invoices, time records and the actual scope of the job or business decision.
- Separate revenue from VAT, direct costs from overheads, and profit from the timing of cash receipts.
- Use the same accounting period and currency for related inputs.
Understand the inputs
The calculation method
Supplier cash = fee + VAT − 20% of fee; no PSWT deduction from VAT.
Worked example
Illustrative inputs and their result.
Example inputs
- Qualifying professional fee excluding VAT (€)
- 5000
- VAT rate (%)
- 23
Calculated example result
- Professional Fee Cash
- €5,150.00
- PSWT Withheld
- €1,000.00
How to interpret the result
A profitable estimate can still create a cash shortfall. Read the cost and timing assumptions as well as the headline profit, price or return; the result is a scenario, not a sales forecast.
Keep the scope constant while changing price, volume, supplier cost or time. A lower-sales or higher-cost case helps show whether the decision depends on an optimistic assumption.
Common mistakes to avoid
- Do not confuse markup on cost with margin on selling price.
- Include work that is easy to miss, such as travel, setup, rework and administration, where the model supports it.
- Do not treat tax collected or an unpaid invoice as freely available cash.
Assumptions and sources
Rates/conditions reviewed against the linked official sources on 5 October 2026. Confirm the stated scope before relying on the result.
Rules checked . This date comes from the tool’s review notes and applies only to its documented scope, not to every selectable scenario.
Sources and further information
If your case falls outside this scope, use a more suitable calculator or contact us about an unclear method.