You should send the vendor a statement of the tax you have withheld on his behalf either monthly or annually. The frequency with which you do this depends on the relevant national legal requirements.

There are country-specific forms defined in the system for this program. The names of these forms are stored in the system. If you do not want to use the standard forms, you can copy them and use them as a reference when creating your own. You then simply define the name of your new form in the system. To do this, select the activity Define forms for tax on sales/purchases return in the General Ledger Accounting Implementation Guide.