Understanding VAT Withholding Certificates

The VAT withholding certificate is a report that lists VAT withholding amounts for vouchers. When you update payment groups using the Work With Payment Groups program (P04571), the A/P Auto Payments – Update program (R04575) submits the V.A.T Withholding Certificate – ARG – 04 program (R7604522A). This program creates documents (document type $I) with the calculated VAT withholding amount for the vouchers that are included in the payment group and prints the VAT withholding certificates.

Using a processing option, you can specify whether to print one certificate for each withholding document or to print several documents in the same certificate. If you want to print several documents in the same certificate, the system separates them by supplier.

If you print one certificate for multiple withholding documents, the system prints the certificate number in the upper-right corner. If you print a unique certificate for each withholding document that is included in a payment from the same supplier, the system prints the withholding number in the detail of the report.

You can also print VAT certificates by payment when you run the Reprint V.A.T. Withholding Certificate program. You run this program when you need to reprint the original certificate or when you create a manual payment that includes VAT withholding and you need to print the corresponding certificate for the manual payment. The R7604521A program includes the same processing option as the R7604522A program.