Procedure documentationWithholding Output VAT

 

After you enter an invoice from a foreign vendor, you enter a credit memo to transfer the output VAT amount from the vendor liability to the account for deferred output VAT withheld.

For more information, see step 2 of Purchase from Foreign Vendors.

Prerequisites

You have entered the vendor's invoice.

Procedure

  1. On the SAP Easy Access screen, choose Start of the navigation path Logistics Next navigation step Materials Management Next navigation step Logistics Invoice Verification Next navigation step Document Entry Next navigation step Enter Invoice. End of the navigation path

  2. Set the transaction to Subsequent Credit.

  3. On the Basic Data tab, enter the following data:

    • Amount: Enter the VAT amount

    • Tax Amount: Leave blank.

    • Calculate Tax: Do not select.

    • Tax Code: Set to M2.

  4. On the PO Reference tab, enter the reference document category and the reference document number.

  5. On the G/L Account tab, enter the line item for the output VAT amount as follows:

    1. Enter the G/L account for the output VAT (in the standard system, 76701020)

    2. Enter the VAT amount and choose Enter.

    3. Select the line and choose Tax Base.

    4. Enter the tax base amount and choose Continue.

  6. Save the credit memo.