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Subject: Re: [ubl-dev] Payment Notification with Tax deductions

Who is liable of such income tax ? He is the one to be aware.
In Italy the customer is mandated to withhold the tax and pay to the tax authority on behalf of the seller.
I have seen that in many countries the WHT is applied as a percentage and is connected with the form of business of the seller (small entities or freelancers usually are subject to WHT).
I do not see your WHT very different but maybe few people are aware of the rules to apply it.

Also in Italy it is the responsability of the customer to pay the right amount even if the WHT showed in the invoice is wrong.

Anyway without mentioning the WHT in the invoice it is practically impossible to have an automatic reconciliation with the payment.
Finally, I strongly think that going to electronic means also to provide valuable and consistent data, thus I would think the invoicer should be aware of the WHT case.

----- Messaggio originale -----
Da: "William Velasquez" <wvelasquez@visiontecnologica.com>
A: "Roberto" <roberto@javest.com>
Cc: ubl-dev@lists.oasis-open.org
Inviato: Martedì, 19 novembre 2013 22:23:48
Oggetto: RE: [ubl-dev] Payment Notification with Tax deductions

Thanks Roberto,

Including the WHT in the Invoice is a possibility, but the common practice here is to delegate this calculation to the payer, cause of the many conditions involved (size of the payer, size of the payee, amount paid, location, kind of transaction), so for the payee is hard to know in advance how much WHT the payer should credit from the payment.

Some companies are so well organized to know it, but the vast majority not.

I'm starting to think that my country is outside the "Universe" of "Universal Business Language"  x-)

-----Mensaje original-----
De: Roberto [mailto:roberto@javest.com] 
Enviado el: martes, 19 de noviembre de 2013 3:33 p. m.
Para: William Velasquez
CC: ubl-dev@lists.oasis-open.org
Asunto: Re: [ubl-dev] Payment Notification with Tax deductions

Hello William,
what you are describing seems to me the withholding tax case (W/T or WHT) which is supported natively by the UBL-Invoice-2.1

The payment remittance advice is just an advice on the upcoming payment for reconciliation reasons.   So the remittance brings the reference/s to the invoices that are going to be paid.

The W/T can be mentioned on the Invoice but there is no reason to mention it on the remittance... it could be out-of-scope.

The invoice issuer should be already aware of the W/T applied, in fact the Invoice is a common place to mention the W/T for the customer.

Hope this helps.

Roberto Cisternino, JAVEST

UBL ITLSC co-chair

----- Messaggio originale -----
Da: "William Velasquez" <wvelasquez@visiontecnologica.com>
Cc: ubl-dev@lists.oasis-open.org
Inviato: Martedì, 19 novembre 2013 21:13:55
Oggetto: [ubl-dev] Payment Notification with Tax deductions

Hi List, 

My company is currently designing a web system for Payment Notification here in my country, Colombia. 

Technically, it will be backed by an XML database and, personally, I want to recommend that we use UBL as the standard to represent the payment notifications. 

We have an special requirement due to the nature of our Tax system: here in Colombia, the government require to the big companies to collect taxes when they pay to the smaller ones. The system is known as auto-retention and may vary depending on the location, amount and kind of transaction. 

Behind this tax system if a customer is going to pay to a provider an invoice of COP $100, the provider receives only $90, the other $10 are transferred from the customer to the govt. tax agency (its name is DIAN), and for the end of fiscal year, the provider can deduct those $10 from his taxes. 

The whole system is a bit complex because the customer can collect this taxes for the national government and also the city govt. 

So the Accounting Party needs to inform to the Payee Party, not only the amount paid, but also the auto-retentions made, so they can know how much to deduct from the taxes. 

I've been studying the RemittanceAdvice specification but I can't find how to include on it information about the taxes deducted from the payment (kind, percentage and amount). 

Can somebody give me some advice if I can use the RemittanceAdvice for this case? 

Thanks in advance, 

William David Velásquez 
Director de I+D 
Visión Tecnológica S.A.S. 
Tel: (4) 444 7292 
Cel: 313 743 54 11 

Follow me: @williamda 

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