Document and Reporting Compliance Mexico: Reporting Withholding Tax Amount with DIOT Report

[AndrewCaus]

Reporting Withholding Tax Amount with DIOT Report

 

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Hello everyone,

Our blog post today is about to correctly report your Withholding Tax information using the SAP Document and Reporting Compliance DIOT Report. We will go through the following topics:

• Background information


• How to configure the report

 

Background Information

The DIOT Report only reflects the Withholding Tax that are being considered at payment.

While an invoice also generates a Withholding Amount, this amount is not supposed to appear on the report. Since the Mexican Tax Administration Service (SAT) only considers the paid amount.

 

How to configure it?

To report Withholding Tax Amounts with the SAP Document and Reporting Compliance DIOT Report, you must configure the withholding taxes for the supplier at payment.

 

1.  Keep the V_T059PP view at the SM30 transaction for MX country.

For users who rely on a screen reader: The picture shows a screenshot of the SAP system in the SM30 transaction. The WTax Type "4% VAT (IVA) for Mexico Freight Vendor", in the Name column, is highlighted.

 

2. Open the Business Partner at Supplier role.

For users who rely on a screen reader: The picture shows a screenshot of the SAP system in the SM30 transaction. The Business Partner field is blank, and the Display in BP Role filed is filled with the FLVN00 FI Vendor option.

 

3. Set the relevant withholding tax.

For users who rely on a screen reader: The picture shows a screenshot of the Supplier: Withholding Tax tab. Below, is the Withholding Tax Types section with two items in the WTax Type column: M1 and M2. At the WTax Type Description column, appears a brief description for each: M1, ISR Withholding Tax and M2, VAT Withholding Tax. Both have the same WTax Code, A1.

 

After following the steps, run the SAP Document and Reporting Compliance DIOT Report and the correct amount for the Withholding Tax should be reported.

Now, when you post a clearing or partial payment, the payment will have the relevant Withholding Tax amount needed to report in SAP Document and Reporting Compliance DIOT Report, proportional to the paid amount. Also, there will be no Withholding amount showing in invoice.

 

More information:

• Learn more about Legal Reports for Mexico: Click here.


• Do you have questions about VAT Reporting for Mexico in? Check our FAQ Note for VAT Reporting.


• Click here to see SAP Note 3169254.


• SAP S/4HANA Cloud: VAT Declaration | SAP Help Portal


• SAP S/4 HANA OP: VAT Declaration | SAP Help Portal


• Follow the SAP Document and Reporting Compliance topic page and tag  to keep up with new blog posts.

Have a question or a suggestion? Please, leave a comment.

See you next time,
Andrew Caus