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Failed Withholding Tax processing for Payment

edited Oct 17, 2025 10:52PM in Ask A Guru 3 comments

Hi,

Good day! We are facing Withholding Tax processing for Payment. In transaction time send an email notification :

''Posting of Withholding Tax for the following transaction/s was not successful: Error encountered: WITHHOLDING TAXES: NO APPROPRIATE VAT CODE FOUND: 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_" For more information, see "Withholding Tax Troubleshooting Guide" in the Help Center. Once you have resolved the error, please click the link below to reprocess the posting

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