• This is not determined automatically by the order type or transactions.
• Unlike the sales tax (VAT), the withholding tax code is purely determined by the value maintained in customer master. Z0, Z1 etc…. This is not processed within billing itself. During billing NO posting is done, for any of the tax code, (Z0, 01, 41…) determined. The processing is during payment and it will be adjusted. It is suggested that we maintain Z0 and change the rates during payment for a service related payment.
• For VAT – it’s processed during billing, hence it will be determined by the material, customer, departing country and destination country