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Withholdings

The withholdings module is based on the Colombian localization (LCO), developed by Carlos Ruiz. The installation of the withholdings plugin for the Venezuelan localization is explained in section 1.5, and it is also documented on the iDempiere wiki.

It is recommended to translate the menus, windows, tabs, and fields of the LCO withholdings module to Venezuelan Spanish (es_VE), as its default translation is in Colombian Spanish (es_CO).

Tax Payer Type​

Three types of taxpayers are defined in the menu:

Performance Analysis -> LCO Withholdings -> Tax Payer Type

  • VAT Tax Payer.
  • VAT Withholding Agent.
  • Non-VAT Tax Payer.

It is recommended to define these manually. Distinguishing withholding agents allows for differentiating whether the organization or clients perform VAT withholdings.

Economic Activity Code (ISIC)​

To import the economic activity codes according to SENIAT, use the file ISIC_Seniat_Completo.csv through the menu:

Performance Analysis -> LCO Withholdings -> ISIC Code Type

The description and name fields were modified in the lco_isic table to allow for long descriptions.

Withholding Categories​

Withholding categories are found in the menu:

Performance Analysis -> LCO Withholdings -> Withholding Categories

You can import the file lco_WithholdingCategory.csv to load the necessary categories.

Withholding Types​

Withholding types are managed according to the codes established by SENIAT. You can access them in the menu:

Performance Analysis -> LCO Withholdings -> Withholding Types

The lco_WithholdingType.csv file is imported with the codes and descriptions. Subsequently, you must update the Withholding Rule Conf and Withholding Calc tabs for each record.

In addition to general tax rates (section 3.2.4), the rates associated with withholdings must be complemented. Import the file c_tax_withholding.csv in the menu:

Performance Analysis -> Accounting Rules -> Tax Rate

The accounting accounts for withholdings must be modified in the Accounting tab of the tax rate.

Organization and Withholdings​

For the organization to perform withholdings, you must verify and configure the correct parameters in:

System Administration -> Organization Rules -> Organization

You must define the Tax Payer Type (e.g., VAT Withholding Agent) and the ISIC Code for the organization.

Business Partners and Withholdings​

For business partners, the taxpayer type and economic activity must be defined. To do this, go to:

Business Partner Relations -> Business Partner Rules -> Business Partner

Complete the information in the Fiscal and Withholding Information data group. The Tax Payer Type value is crucial for the VAT withholding calculation.

Products and Withholdings​

To associate a withholding type with a product, go to:

Material Management -> Material Management Rules -> Product

In the Fiscal and Withholding Information data group, select the Withholding Category that applies to the product.

Document Types and Withholdings​

In the document type configuration, you must indicate if a document generates a withholding. Go to:

Performance Analysis -> Accounting Rules -> Document Type

In the Fiscal and Withholding Information data group, check the corresponding option.

VAT Withholding Types Configuration​

VAT withholding in Venezuela is calculated on the total tax amount of a document. There are two types of calculations: 100% (if the business partner is a Non-VAT Tax Payer) and 75% (if the business partner is a VAT Tax Payer or a VAT Withholding Agent).

To configure the application rules, use the Withholding Types window which has three tabs:

  1. Withholding Rule Conf
  2. Withholding Rule
  3. Withholding Calc
  • Rule Configuration (Withholding Rule Conf): Defines whether the rule will use the business partner's and the organization's taxpayer type.
  • Withholding Calculations (Withholding Calc): Defines the calculation percentages (75% and 100%). The Base Type must be Tax, as the calculation is performed on the tax amount and not on the taxable base.
  • Withholding Rule (Withholding Rule): Associates the calculations with the conditions of the taxpayer types. For example, the 100% calculation is applied to the Non-VAT Tax Payer type.

ISLR Withholding Types Configuration​

ISLR withholdings depend on the type of good or service and, in some cases, on the transaction amount.

To configure an ISLR withholding with a fixed percentage (e.g., code 002 for "Non-Commercial Professional Fees - Percentage: 3%"), the same three tabs as for VAT are used:

  • Rule Configuration: Defines whether the business partner's taxpayer type is used.
  • Withholding Calculation: The Base Type must be Line, as the calculation is made on the line amount of the document without VAT. The predefined tax rate (002) is associated.
  • Withholding Rule: The calculations are associated with each taxpayer type.

Tiered ISLR Withholding Types Configuration​

For tiered ISLR withholdings, the same guidelines are followed, but you must define as many calculation rules as there are tiers. Each calculation rule will be associated with a withholding rule for each taxpayer type.