How To Fix 7Q327 - Vendor is not subject to withholding tax

SAP Error Message - Details

• Message type: E = Error

• Message class: 7Q - Messages for new withholding tax functions

• Message number: 327

• Message text: Vendor is not subject to withholding tax

Self-Explanatory Message

Since SAP believes that this specific error message is 'self-explanatory,' no more information has been given.The majority of messages in the SAP system have a message text, however this is frequently insufficient to comprehend or resolve the problem.

To make things easier, more detailed information is frequently added to describe the issue, how to fix it, and the necessary steps or configuration modifications.

Unfortunately, there isn't any extra information in this error notice.

What else can you do?

First, use our AnswerBot below to get a possible cause and solution (requires a premium subscription).

Also, review the in-depth Common Questions & Answers listed below; you could discover a solution there or be able to connect with others who have faced similar challenges.

You can also try searching the SAP support portal (support.sap.com) but you need a special user ID to access it. It is possible that an SAP support note exists that provides additional details about the mistake or even steps for fixing it.

Smart SAP Assistant

• What is the cause and solution for SAP error message 7Q327 - Vendor is not subject to withholding tax ?

  The SAP error message 7Q327, which states "Vendor is not subject to withholding tax," typically occurs when you are trying to process a payment or create a document for a vendor that is not set up to be subject to withholding tax in the system. This can happen in various scenarios, such as when creating invoices, payment documents, or during the vendor master data setup.
  Cause:
  
  Vendor Master Data Configuration: The vendor in question may not have been configured to be subject to withholding tax. This can happen if the withholding tax type is not assigned to the vendor in the vendor master data.
  Withholding Tax Type: The withholding tax type may not be correctly defined or linked to the vendor.
  Country-Specific Regulations: Depending on the country, certain vendors may not be subject to withholding tax based on local tax regulations.
  
  Solution:
  
  
  Check Vendor Master Data:
  
  Go to the vendor master data (transaction code XK03 for general data or FK03 for company code data).
  Verify that the withholding tax type is correctly assigned in the relevant sections (usually in the "Withholding Tax" tab).
  If the vendor should be subject to withholding tax, you may need to update the vendor master data to include the appropriate withholding tax type.
  
  
  
  Update Withholding Tax Type:
  
  If the vendor is indeed subject to withholding tax, ensure that the withholding tax type is correctly defined in the system. You can do this in the configuration settings (transaction code OBWQ for withholding tax types).
  Make sure that the withholding tax type is active and properly configured for the relevant country.
  
  
  
  Consult with Tax Department:
  
  If you are unsure whether the vendor should be subject to withholding tax, consult with your finance or tax department to clarify the vendor's tax obligations.
  
  
  
  Testing:
  
  After making the necessary changes, test the transaction again to ensure that the error message no longer appears.
  
  
  
  Related Information:
  
  Withholding Tax Configuration: Familiarize yourself with the withholding tax configuration in SAP, which includes defining withholding tax types, rates, and the conditions under which they apply.
  Documentation: Refer to SAP documentation or your organization's internal guidelines for handling withholding tax to ensure compliance with local regulations.
  User Roles and Authorizations: Ensure that you have the necessary permissions to make changes to vendor master data and withholding tax settings.
  
  By following these steps, you should be able to resolve the error message 7Q327 and ensure that your vendor's withholding tax status is correctly configured in SAP.