Feature Note / Local Press

Change of subject of the VAT

VAT
19 March, 2018

Know how it affects the SME

The Internal Revenue Service extended a few weeks ago the deadline for entry into force of Ex Resolution No. 2, of January 12, 2018. It was originally in force on March 1 and now it will be on May 1 of this year.
This resolution considers the withholding of VAT on certain items (sales of rice, berries, construction activities, livestock, pulses, wood, gold, paper and cardboard for recycling, hydrobiological species, wild products, wheat and scrap), respectively by of large taxpayers, which entails that these taxpayers, the majority with limited working capital, must request the return of their remaining VAT tax credit supported in their purchases, in administrative form before the Service, being time consuming and cumbersome, affecting its financial viability
This administrative rule, which empowers the National Director of the Internal Revenue Service and applies when there are areas of difficult inspection, is not understood today that we have almost 100% of the electronic issuing taxpayers as of February 2018.
We hope that the new government will consider this measure and that it will not be applied, and that the Service exercises its audit power in those areas where there is tax evasion, not affecting an entire SME sector with this type of measures.

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