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Procedure documentationDefining Withholding Tax Settings for Vendors: Israel Locate this document in the navigation structure

 

SAP Business One lets you generate two types of reports with vendors details to submit to the Israel Tax Authority:

  • Maarechet 1000 (up to 1000 vendors in the company database)

  • Mivzak (more than 1000 vendors in the company database)

You can also import electronic files received from the Israel Tax Authority into SAP Business One to update settings for each vendor defined as subject to withholding tax in the company database.

To define withholding tax information for vendors, follow the steps below.

Procedure

  1. From the SAP Business One Main Menu, choose   Business Partners   Business Partner Master Data   Accounting   Tax  .

  2. Select the Subject to Withholding Tax checkbox.

  3. If required, select the Hierarchical Deduction at Source checkbox to indicate that the vendor uses the hierarchical deduction at source method for tax deduction.

  4. Check the entry in the Withholding Shaam Group field. If you want to change this setting, choose the WHT Determination button. The Withholding Tax Determination — Setup window appears.

  5. Specify the required parameters. To save your changes, choose the Update button, then the OK button.

  6. On the Tax subtab, to indicate that the vendor is approved for withholding tax according to Israel Tax Authority records, select the Withholding Tax Certified checkbox.

  7. To indicate that the vendor has a valid certificate stating that the bookkeeping meets legal standards, select the Bookkeeping Certified checkbox.

  8. To save your changes, choose the Update button, then the OK button.