Process Flow for Calculating RG 3164 Withholding
The system calculates the VAT RG 3164 on each payment, according to the following process:
Based on the company setup (version of the PO - PCG Process - ARG program), the system determines if the payment is subject to general VAT or to RG 3164 VAT. In the case of VAT RG 3164, it considers the minimum threshold amount configured.
Suppliers could be subject to RG 726 and RG 615, and they can be small contributors or UTEs. The only attribute considered for the RG 3164 VAT is RG 726, which defines different withholding percentages for specific suppliers.
Users can pay standard or exempt vouchers, or include corrections for companies that use the RG 3164 VAT. In all of these cases, the system behaves differently:
In the case of standard vouchers, the system accumulates the amounts of the vouchers for a payment and generates the VAT withholding lines.
In the case of exempt vouchers, to accumulate or not the system refers to the base amount that you set up in the Work With VAT Withholding Percentages program (P760402A).
Correction vouchers and credit notes are accumulated but no withholding is generated.
The system considers payment in kind and not in kind for RG 3164 VAT. The VAT does not apply for credit invoice payments. When the user pays vouchers with payment in kind, as in the case of corrections the base amount is accumulated but the withholding is not generated. You cannot perform one payment part in kind and part not in kind.