Understanding Supplier Withholding for Peru

When you process payments for vouchers, the system calculates general sales tax (IGV) withholding for suppliers if you set up the supplier for withholding. You must set up suppliers for IGV withholding when you process real estate sales transactions for the supplier or process the rendering of services and construction contracts that are subject to the tax.

You also set up withholding percentages for vouchers for the tax duty payment system (SPOT) withholding. When you process SPOT vouchers for payment, you also withhold a tax amount from the supplier and send the payment to the National Bank. The values that you set up in the Spot Maintenance Percentage (P76P410) program determine whether the system generates a payment to the National Bank and the percentage that is withheld from the supplier.