Withholding VAT Input tax

[Former Member]

Hi All,

I have a querry.

Our Client has a requirement to withhold a percentage of the input tax from vendor invoices during payment.

Eg the Input Tax is 16% . This amount is booked fully in the invoice.

During payment , the 6% of the input tax is withheld and the vendor is only paid the net invoice amount and 10% of the input tax.

How can we take care of the 6% withholding VAT?

Regards

Joe

[rachit_gupta]

Hi Joel,

Try this:

1. Based on country define your condition types under tax procedure.

2. Assign desired percentage for each condition type.

3. Tax procedure will determine the sequence of calculation.

Regards,

Rachit.

[Former Member]

try when you define the Withholding tax type please tick base amount as either net amount or Tax amount . in define Tax type for Invoice posting

[Former Member]

its not withholding tax.. you use the normal input tax indicator V1 that has 16% on invoice then during payment , we withhold 6% of the input tax.