SAP Knowledge Base Article - Preview

3796113 - Brazil Withholding Taxes - ISS Withholding Tax Applied to All Invoices When Vendor Provides Both WHT-Liable and Non-Liable Services

Symptom

In Brazil, a vendor provides two types of services:

  • Warehousing services — subject to ISS withholding tax (WHT)
  • Freight services — not subject to ISS WHT

Because Brazilian law requires a unique CNPJ number per legal entity, it is not possible to create two separate Business Partners (BPs) for the same vendor. The ISS WHT configuration is maintained at the vendor role level in the BP master data.

When posting an invoice in transaction MIRO, the ISS withholding tax is automatically proposed and applied to all invoices for this vendor — regardless of whether the service on the invoice is subject to ISS or not. There is no standard mechanism in SAP systems to apply WHT selectively based on the type of service being invoiced, without modifying the vendor master each time.


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Environment

  • Localization for Brazil Withholding Taxes
  • SAP ERP
  • SAP ERP Central Component
  • SAP enhancement package for SAP ERP
  • SAP enhancement package for SAP ERP, version for SAP HANA
  • SAP S/4HANA
  • SAP S/4HANA Finance
  • SAP S/4HANA Cloud Private Edition
  • SAP Fiori for SAP S/4HANA
  • SAP Fiori for SAP S/4HANA Finance
  • SAP Fiori for SAP S/4HANA Cloud Private Edition

Product

SAP ERP Central Component all versions ; SAP ERP all versions ; SAP Fiori for SAP S/4HANA Cloud Private Edition all versions ; SAP Fiori for SAP S/4HANA Finance all versions ; SAP Fiori for SAP S/4HANA all versions ; SAP S/4HANA Cloud Private Edition all versions ; SAP S/4HANA Finance all versions ; SAP S/4HANA all versions ; SAP enhancement package for SAP ERP all versions ; SAP enhancement package for SAP ERP, version for SAP HANA all versions

Keywords

ISS withholding tax, WHT, Brazil, CNPJ, Business Partner, vendor master, MIRO, service type, warehousing, freight, withholding tax type, withholding tax code, FI-LOC-FI-BR, FI-LOC-FI-BR-WHT, SAP ERP, S/4HANA, S/4HANA Cloud Private Edition, selective withholding tax, multiple services, vendor role, BP withholding tax tab, 2544766 , KBA , FI-LOC-FI-BR-WHT , Withholding Taxes for Brazil , Problem

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