E-Business Tax (MOSC)

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Can Withholding Tax Be Calculated on VAT Amount?

in E-Business Tax (MOSC) 1 commentAnswered

Hello everyone,

We are currently implementing Oracle Fusion Tax for Guatemala and are trying to configure a withholding tax that is calculated based on the VAT amount (Transaction Tax Amount), instead of the invoice line amount.

Our expected scenario is:

Invoice Amount: 3,000.00
VAT (12%): 360.00
Withholding Rate: 15%
Expected Withholding Amount: 54.00 (15% × 360.00)

We have already configured the Withholding Tax Regime, Tax, Tax Status, Tax Rate, Taxable Basis Formula, Prior Tax configuration, Compounding Precedence, Tax Rules, Tax Determining Factors, and Tax Rate Determination. The VAT (Transaction Tax) is calculated correctly, and the withholding tax rate is determined correctly. However, the Withholding Tax Amount is always calculated as

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