Regarding FATCA- International Vendors Tax withhold

Question

Hi Experts,
We have this requirement to implement / start withholding tax (some %) from the payments made to International vendors if they don't supply proper documentation (Like W8s). this is new regulation that will be in effect from July 1 2014. companies who do not gather this documentation and do not withhold the % withhold from the foreign vendor internation payments will be eligible for the panalty.
The requirement would be
1) able to indentify at the vendor master levewith a check mark similar to withholding tax indicator
2) able to generate a report based on expiration date of this W8
3) able to withhold % amount if the vendor not provided the properocumentation
Therefore we were looking in to possble solution and found some details on "SAP Tax Classification and Reporting for FATCA" but we are on EHP4 and I am not sure how to get this FATCA solution as it seems to be higher version the EHP4. how other companies are working on this FATCA requirement?
We do not extended withholding tax functionality or withholding tax functionality in our company.
https://help.sap.com/fatca#section1
SAP Note 1826451
https://websmp105.sap-ag.de/~form/sapnet?_SHORTKEY=01100035870000758813&_SCENARIO=01100035870000000202&
Thanks,
Vamshi K

Answer 1

Hi Amit,
For your information, FATCA solution from SAP supports banking industries only. If you are talking about the banking organization, then you have the below documents provided by SAP where you can get the same through your S user id in Service market place.
1. SAP Tax Classification and Reporting for FATCA 1.0 - Apps Operation Guide
2. SAP Tax Classification and Reporting for FATCA 1.0 - Business Scenario Descriptions
3. SAP Tax Classification and Reporting for FATCA 1.0 - Master Guide
4. SAP Tax Classification and Reporting for FATCA 1.0, SP01 - Configuration Guide
SAP Note
1826451 - Release strategy for the ABAP add-on FATCA
If your's is not a banking industry, then you can follow the India WHT config and achieve the result.
1. Create FATC as Withholding tax key
2. Create a WHT Key at payment level
3. Create tax codes and assign accounts to them.
4. Activate EXT WHT.
If exemption is there, you can create an exemption reason and assign it.
Hope this helps.
Thanks