Update Witholding Tax

[SorePG]

Hi all,

I just started using sap and got the task to update witholding tax, what is the witholding tax update used for? is it because of input errors or vendors who ask for it?

[sanilbhandari · Accepted solution]

Hi @SorePG 

The below help documentation nicely explains the use of with holding tax:

Withholding Tax | SAP Help Portal

You might need to ask your business user (depending on your country), the below question:

1) Should with holding tax be posted on Invoice or on payment or which ever occurs first, depending on which you would assign the with holding tax type in vendor master

2) What is the percentage of with holding tax rate, depending on which you will select the appropriate with holding tax code.

3) If there is an exemption applicable for the vendor, you will update the with holding tax exemption details.

Thanks & regards

Sanil Bhandari

[SorePG · Accepted solution]

Hello Sanil Bhandari thanks for your answer, and i have on more question, what issues or problems require updating the witholding tax?

[sanilbhandari · Accepted solution]

I am not sure, on the country. However, some of the common issues i can collect are: 1. One with holding tax code was already updated and you update one more with holding tax. You need to adjust the with holding tax line items, if you have removed an old code and updated the new one 2. You have a with holding tax code which is not available, than you need to have the required configuration in place 3. Country specific or vendor specific requirements, such as calculating with holding tax only after the invoice value reaches a certain level. These are some of the issues that could come up