Understanding Small Contributor Limits

When a supplier who is registered as a small contributor exceeds the annual transaction limit, you must process and withhold amounts for VAT and profit withholdings. You must also process withholdings for small contributors who are not listed as small contributors on the AFIP website.

The system uses the Small Contributors that Exceed the Limit table (F76A405) to hold data about small contributors who must have VAT and profit withholding applied to payments.

The F76A405 table is populated by the system when it determines that a small contributor exceeds the limits. You manually create a record in the F76A405 for suppliers for whom you cannot verify the small contributor status with the AFIP. You use the Small Contrib.under Withhold Obligation program (P76A405) to manually add records.

When you create payment groups in Argentina, the system runs a business function that validates whether a supplier is set up as a small contributor, whether the limits for a 12-month period are exceeded, and whether a record for the small contributor exists in the F76A405 table. If a small contributor exceeds the limit at any time, the transaction that causes the small contributor to exceed the limit and all subsequent transactions must have the withholding for VAT and profit applied. The system performs similar validations for small contributors when you activate the validations in the processing options for the Manual Payment – Withholding Registration - ARG program (P76A0461) and enter a manual payment.

When a small contributor exceeds the limits, the system creates a record in the F76A405 table. The system accesses the records in the F76A405 table when you create payment groups or enter a manual payment and writes a record to the table for suppliers who exceed the limit. If a record exists in the table for a small contributor, the system does not need to perform all of the validations when you create payment groups; it always applies the VAT and profit withholding. For manual payments, the system issues a warning message and requires that you enter information for VAT and profit withholding if a record for the supplier exists in the F76A405 table and the validations were activated in the processing options.