VAT RG 3164 Withholding Calculations

When a supplier who provides any of the services defined by the resolution RG 3164 exceeds the monthly transaction threshold, you must process and withhold amounts for VAT RG 3164.

The monthly accumulated base amount is calculated based on the combination of the company and the supplier Tax ID. When processing vouchers, the system always compares the Accumulated Base Amount with the minimum. Two scenarios may occur:

• If the voucher payment plus the base accrual amount in the same month is lower than the minimum, the amount is accumulated but no withholding is generated.

• If the voucher payment plus the base accrual amount in the same month is equal to or greater than the minimum, the amount is accumulated and withholding is calculated.

The formula for withholding calculation is: WH Amount = Calculation Base Amount * Withholding Percentage, where:

• If Accumulated WH Amount = 0 then Calculation Base Amount = Voucher Base Amount + Accumulated Base Amount

• If Accumulated WH Amount > 0 then Calculation Base Amount = Voucher Base Amount

The system uses the Payments Done - Accum Amounts table (F704003) to hold data about monthly accumulated amounts for withholding purposes, and the Payment WH Info table (F704002) to store withholding information. This last table is used later on as a source when generating reports.

The stored information in the Payment WH Info table (F704002) includes:

• Tax Code (VAT3164, in this case)

• Company Tax ID

• Supplier Tax ID

• Withholding concept

• Accumulated Base Amount

• Percentage

• Tax amount