Withholding Tax Update 
Use
In Argentina, the tax authorities (Administración Federal de Ingresos Públicos, AFIP) require companies to withhold value-added tax (VAT) on payments to certain vendors. Each month the AFIP sends each company required to withhold tax a file that contains information on relevant vendors – including their payment status, which controls the percentage of VAT that must be withheld for them. You use this report to upload the file, and update vendor master data and open items. You then print the output and submit it to the AFIP upon request, in accordance with General Resolution 615/99 and complementary Resolution 1575/03.
To access the Withholding Tax Update report, from the SAP Easy Access screen, choose Accounting ® Financial Accounting ® Accounts Payable ® Withholding Tax ® Argentina ® Withholding Tax Update.
Prerequisites
Before you run the report, you must define a new withholding tax code in Customizing for 100% VAT withholding, and each month you must save the AFIP file on the application server that you run the report on.
Do not change any of the withholding tax codes assigned to the vendors manually, as this will lead to errors.
Fields LFB1-QSBGR (status of the vendor in AFIP file) and LFBW-WT_WITHCD (withholding tax code) in the vendor master record are directly related in the report. Do not change them individually for any reason because it will create inconsistencies in the master record and in the related open item when you run the report.
Features
When you run the report, it reads the file and makes the following changes in the system via batch input:
- In each vendor master record, it enters:
¡ The vendor’s payment status, in the Exemption Number field (LFB1-QSZNR)
¡ The transaction code (a technical code that serves as proof that the status has been changed correctly), in the Exempt.Authority field (LFB1-QSBGR)
¡ The period for which the new rate of withholding tax applies – in the format MM/YYYY, in the Account Memo field (LFB1-KVERM)
- It changes the withholding tax code in any open items related to the vendor.
There are five payment statuses, which govern how much VAT you have to withhold as follows:
Payment |
VAT Withheld |
Explanation |
1 |
Normal rate – less than 100% |
Assigned to what the AFIP considers good vendors. |
2 |
100% |
Vendor does not comply with AFIP regulations in providing fiscal documents, so AFIP considers it a bad vendor and 100% VAT must be withheld. |
3 |
0% |
VAT is not withheld because vendors are non-responsible or not registered for VAT. |
4 |
100% |
Vendor does not comply with the supply chain process, so AFIP considers it a bad vendor and 100% VAT must be withheld. |
5 |
100% |
Vendor has issued type-M invoices with net amount over ARS 100, so AFIP considers it a bad vendor and 100% VAT must be withheld. |
Selection
On the report selection screen, enter data as required:
· The company code you want to run the report for
· The withholding tax type and code that you have defined for withholding 100% VAT
· The path and file name of the current AFIP file stored on the application server
· A minimum amount above which the system updates a document
You can simulate the results by running the report in test mode.
Output
The output list displays the following information per vendor:
Info...
· Company code
· Old status (that was previously in the vendor master record)
· New status (that was updated from the AFIP file)
· Withholding tax code (from the AFIP file)
· Results (various types of information, for example, the reason why the system was not able to process the batch input session)
· Type (the type of message resulting from the batch input process)
· Batch input message (detailed information from the batch input process)
You can expand the list for each vendor to view its open items that were modified. The expanded list displays:
· Number of document
· Year of document
· Item number (modified vendor line)
· Withholding tax code (new tax code)
· Type (same as above)
· Batch input message (same as above)