How To Fix FP059 - Vendor is exempt from withholding tax until &

SAP Error Message - Details

• Message type: E = Error

• Message class: FP - Invoice Parking

• Message number: 059

• Message text: Vendor is exempt from withholding tax until &

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 FP059 - Vendor is exempt from withholding tax until & ?

  The SAP error message FP059, which states "Vendor is exempt from withholding tax until &," typically occurs in the context of financial transactions involving vendors who are exempt from withholding tax for a specified period. This message indicates that the vendor in question has been marked as exempt from withholding tax in the system, and the exemption is valid only until a certain date.
  Cause:
  
  Vendor Exemption Status: The vendor has been set up in the system with an exemption status that is valid only until a specific date. After this date, the vendor may be subject to withholding tax.
  Incorrect Date Configuration: The date until which the vendor is exempt may not be correctly configured, or the current date may exceed the exemption period.
  Missing Tax Information: The vendor's tax information may not be fully maintained in the system, leading to the error when trying to process a transaction.
  
  Solution:
  
  
  Check Vendor Master Data:
  
  Go to the vendor master data in SAP (transaction code XK03 or FK03).
  Verify the withholding tax information and the exemption status.
  Ensure that the exemption end date is correctly set and that it has not expired.
  
  
  
  Update Exemption Status:
  
  If the exemption is still valid but the date is incorrect, update the vendor's master data to reflect the correct exemption period.
  If the exemption has expired, you may need to assess whether the vendor should be subject to withholding tax going forward.
  
  
  
  Consult with Tax Department:
  
  If there are uncertainties regarding the vendor's tax status or exemption, consult with your organization's tax department or financial team to ensure compliance with tax regulations.
  
  
  
  Review Transaction Details:
  
  Ensure that the transaction you are trying to process is appropriate for the vendor's current tax status.
  If necessary, adjust the transaction or select a different vendor.
  
  
  
  Related Information:
  
  Withholding Tax Configuration: Familiarize yourself with the withholding tax configuration in SAP, including how to set up vendor exemptions and the relevant tax codes.
  Tax Compliance: Ensure that your organization is compliant with local tax laws regarding vendor payments and withholding tax obligations.
  SAP Documentation: Refer to SAP Help documentation for detailed guidance on managing vendor master data and withholding tax settings.
  
  By following these steps, you should be able to resolve the FP059 error and ensure that your vendor's withholding tax status is correctly configured in the SAP system.