Perception taxes or withholding taxes on sales

Requirement

Companies that are identified as withholding agents are responsible for collecting taxes from their customers. These companies can add due taxes to the related invoices, thus increasing their total due amount. These additional taxes often depend on the customer's regime, the province or municipality. The taxes that are collected, for example VAT and the turnover tax, are directly paid to the tax authority.

M3 solution

In M3, users can add up to three additional tax types to an invoice, depending on the customer area or state and the customer's tax regime.

Configuration guidelines

Program ID Program name Description or comment
CMS235 Tax Regime. Open Create the tax regimes.
CRS610/J Customer. Open Allocate a tax regime to the customer.
CMS016 Available Object Ctrl Parameters. Open You can set up to three objects per priority for (CMS237).
CMS236 Define each tax calculation code rule, for example these elements:
  • Type of base amount – net or gross amount
  • Base percentage
  • Tax percentage
  • Limit amount
  • Minimum tax amount
CMS237 Select up to three tax calculation rules according to the objects that you have set in (CMS016), such as the customer code.