Self-billing
Requirement
In Chile, taxes are withheld upon the receipt of invoices by companies identified as withholding agents. When acquiring professional services, legal entities must withhold a percentage on the amount of payments made by them to the services providers.
As of March 1, 2018, the withholding agents who acquire goods or hire services that are affected by the VAT subject changes (cambios de sujeto del IVA) must perform these actions:
- The withholding agents must issue purchase invoices.
- The withholding agents must withhold and declare the percentage of VAT established in the resolutions of VAT subject changes, regardless of whether electronic invoices are issued by the product seller or not.
This measure applies to all VAT subject changes that are related to the sales of the following products:
- Rice
- Berries
- Construction activities
- Vegetables
- Wood
- Air
- Paper and cardboard for recycling
- Hydrobiological species
- Wild products
- Wheat
- Scrap
M3 solution
For a description of the withholding taxes, see Supplier tax deduction or withholding tax. The withholding accounting transactions are automatically registered at invoice entry, whether the invoice is entered manually or by batch.
Self-billing functionality is provided by M3 for the issuance of a supplier invoice after goods receipt. In accordance with the withholding tax setup, the withheld amount is deducted at supplier batch entry.
Configuration guidelines
| Program ID | Program name | Description or comment |
|---|---|---|
| CRS624/F | Supplier. Define Purchase & Financial | To authorize self-billing for the applicable suppliers, select the Self-bill permt check box. |
| PPS112 | Purchase Agreement. Open for Self-Billing | Configure agreements per supplier. |
| PPS114 | Supplier. Connect FAM function | Set a link to FAM function AP52. |
| PPS116 | Supplier Invoice Proposal. Generate for Self-Billing | The user creates supplier invoices according to the completed receipt. Supplier invoices are linked to self-billing. |
| PPS118 | PO Line. Display Received to Self-Billing | The user can view the purchase order status. |
| PPS200 | Purchase Order. Open | The user creates the purchase order. The purchase order is linked to the agreement number. |
| APS450 | Supplier Invoice Batch. Open | The user validates self-billing invoices. |
| CAS900/H | Settings - Cost Accounting | Select a value in the 065 Create account entries at goods receipt list. |