Understanding VAT Withholdings by RG 726 or RG 615

You can specify the withholding percentage to be used based on the supplier's classification (2 or 4) and the regulation in question (RG 726 or RG 615).

This VAT percentage table does not replace the VAT percentage set up for RG 18. Rather, this table complements the other. Both tables must be maintained.

When you follow RG 615 requirements for processing, you must also specify the substitute percentage to be applied to classification 1 if the total amount of the invoice is equal to or less than the minimum amount that is specified.

If the total amount of the invoice is greater than the minimum amount specified or if RG 726 is followed for suppliers for a classification of 1, the system uses the VAT withholding percentage set up in the V.A.T. WH - Percentages program (P760402A).