SAP Knowledge Base Article - Public

2483096 - Withholding Tax Determination isn't working in Supplier Invoice

Symptom

You have maintained the Withholding Taxes Classification master data for Supplier X and Product Y (X represents the Supplier ID and Y represents the Product ID).

You have created a Supplier invoice for Supplier X and Product Y, but the Withholding Taxes are not determined as expected from the previous configuration. The system shows No Records found in the Taxes table under the Withholding Taxes tab of the Item Details.

Reproducing the Issue

  1. Go to Supplier Invoicing work center.
  2. Go to Invoices and Credit Memos view.
  3. Show All Invoices.
  4. Find ABC (ABC represents the Invoice ID).
  5. Select Edit.
  6. Select View All.
  7. Go to Items tab.
  8. Go to the Taxes tab in the Item's Details.
  9. Go to Withholding Taxes subtab.

Here you can see that, in the Taxes table, there are No records found.

Cause

As detailed in the Help Center document Withholding Tax Determination, the determination of the Withholding Taxes is based on 3 conditions:

  • Tax Authority/Company Tax Arrangements,
  • Supplier,
  • Material.

You have not configured the Company Tax Arrangements for the Tax Authority used in the Supplier Invoice.

Resolution

To ensure the system picks up the Withholding tax in the Supplier Invoice, you must activate the Withholding Tax Required checkbox in the Company Tax Arrangements for the Company and Tax Authority used in that invoice. For this, you can follow these steps:

  1. Go to Tax Management work center.
  2. Go to Company Tax Arrangements view.
  3. Find the Company DEF (DEF represents the Company ID used in the Supplier invoice) for the Tax Country of your Invoice.
  4. Select Edit.
  5. Mark the checkbox Withholding Tax Required.
  6. Save.

You can now recreate a supplier invoice for Supplier X and Product Y and the Withholding tax will be automatically picked up.

Keywords

KBA , LOD-CRM , Cloud for Customer , How To

Product

SAP BUSINESS BYDESIGN 1611 ; SAP BUSINESS BYDESIGN 1705 ; SAP BUSINESS BYDESIGN 1708 ; SAP Business ByDesign 1702