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Dynamics 365 Community / Forums / Small and medium business | Business Central, N... / SII Spanish Localizati...
Small and medium business | Business Central, N...
Suggested answer

SII Spanish Localization (Restricting IRPF withholding)

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Posted on by Muhammad Noman Siddiq 60

Hello All,

We are using Business central 14 version in Spain. We want to restrict the income tax Withholding Invoices transaction sending from Business central to Spanish Tax authority by using SII. Currently, when we are sending the transaction its going along with the WTH tax which is not required as per Spanish Tax authority. 

If any one know the solution please let me know? Its's urgent!

Please also find the reference of my question as per Spanish Tax authority website.

Question: In the case of invoices with IRPF withholding, in the invoice total: should the total be reported as the sum of bases plus VAT quotas, or the total that appears printed on the invoice (once the amount of the VAT withholding has been subtracted? income tax)?:

Answer: The implementation of the SII only affects the keeping of the VAT registration books. Income tax withholdings should not be reported.

Categories:
Financial Management
  • Suggested answer
    Vanessa Garcia Profile Picture
    Vanessa Garcia on at
    RE: SII Spanish Localization (Restricting IRPF withholding)

    Hello again :-),

    happy to help.

    Well, if you have an invoice for 500 and -200 of Withholding tax, then we see in the XML the base of 500. The negative line of -200 is not sent to SII.

    If from there I create a Corrective Invoice (Credit Memo) the negative line of -200 will be still there, but also ignored on the XML sent to the Tax Authorities, but the Base will be of course -500.

    This as long as you have the "Do not export negative lines" on the SII Setup page.

    I hope it helps.

    Have a great day,

    Vanessa.

  • Muhammad Noman Siddiq Profile Picture
    Muhammad Noman Siddiq 60 on at
    RE: SII Spanish Localization (Restricting IRPF withholding)

    Thank you for your response. I guess it will work.

    My only concern is in the case of credit memo will the amount be reflected positive while sending the transaction to Spanish tax authority?

  • Suggested answer
    Vanessa Garcia Profile Picture
    Vanessa Garcia on at
    RE: SII Spanish Localization (Restricting IRPF withholding)

    Hello Muhammad,

    in the Spanish version of Business Central, we do not support Withholding Tax as such.

    Partners just use a negative line for the relevant account to add those taxes.

    Something we included in SII Setup was the possibility to exclude negative lines from the XML/documents sent to SII:

    pastedimage1662973018385v1.png

    This is what is currently being used to exclude "Withholding Taxes" entered as negative lines in the documents, when sending them to the Spanish Tax Authorities, as those do not need to be reported.

    I hope it helps,

    Vanessa.

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