When we try to create a bill that has withholding tax calculation, the system is showing an error message that there is no WH Tax code available to apply in the transaction. The error message is attached in the below figure.
The error is as below:
Error triggered by USER: _______ Code: WITHHOLDING TAXES: NO APPROPRIATE VAT CODE FOUND Details: Please make sure that there is at least 1 tax code with the following settings for the current country/subsidiary:
Rate = 0.00%
Exclude From VAT Reports = true (checkbox should be marked)
Inactive = false (checkbox should NOT be marked)
HINT: Usually the above settings can be found in a tax code with the name/code containing “UNDEF_”
The reason for the error is that there is no tax code available with the below features for the subsidiary in the vendor bill:
- Exclude from VAT reports:- True
- Tax Rate:- 0%
- Inactive:- False
If the vendor bill has WH Tax application, then we have to check the check box “Apply WH Tax” in the item line. We have to select the WH Tax code which can be applied to the item line. Then the system will add the WH tax item line in the bill. For this line, the system will check the VAT code with the above listed features.
This WH Tax item line is excluded from VAT reports.
The figure below shows the WH Tax fields in the item line.
