2713937 - Italy: VAT Input Tax and Withholding Tax Posting at Time of Supplier Down Payment

Please note: This KBA is relevant for Localization Italy.

• You clear a Down Payment Request with a payment generating a Down Payment for your supplier.
• In the posting you notice that postings have been made to the Withholding tax account as well as the account set up for input VAT.
• In the posting you notice a Withholding Tax credit posting as expected.
• You also notice a Input VAT debit entry.
• However, according to Italian legal requirements, you expect the input VAT not be posted at the time of the Down Payment but only at time of the Supplier Invoice.

SAP Business ByDesign

Down payment Input VAT, Input VAT posting Supplier Invoice Italy , KBA , AP-TTE-GLO , Cross-Country Extensions , Problem