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ARTICLES

LEGAL RESOURSES

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    • ARTICLE 5A: ADJUSTMENT IN VALUE-ADDED TAX (VAT) ACCREDITATION WHEN ACTIVITIES ARE TAXED AND NOT-TAXED INDISTINCTLY

     

    When the taxpayer has made the accreditation in the terms of article 5, section V, subsection d), number 3 of this Law (LIVA: Art. 5), and in the months after the one in which the accreditation in question was made, the proportion mentioned in said provision be modified by more than 3%, the accreditation must be adjusted as follows: (RLIVA: Art. 22A) (RLIVA: Art. 71)

  • When the proportion of the value of the activities is decreased for which the value-added tax must be paid is reduced or the 0% rate is applied, with respect to the value of the total activities, the taxpayer must reimburse the corresponding accreditation, updated since the month in the one that was accredited and until the month in question, according to the following procedure:

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  • To the value added tax that has been transferred to the taxpayer or paid in the importation, corresponding to the investment, the maximum deduction percentage will be applied per exercise for the good in question is established in Title II of the Law on Income Tax (Ley del Impuesto sobre la Renta).

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  • The amount obtained pursuant to the preceding paragraph will be divided by twelve.

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  • The amount determined in accordance with the preceding paragraph, shall apply the proportion value of the activities for which the value-added tax must be paid or the rate of 0% will be applied, represented in the total value of the activities that the taxpayer carried out in the month in which it carried out the accreditation. (RLIVA: Art. 16) (RLIVA: Art. 17)

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  • To the amount determined in accordance with subparagraph b) of this section, shall apply the proportion value of the activities for which the value-added tax must be paid or the rate of 0% is applied, represents in the total value of the activities will be applied that the taxpayer makes in the month for which the adjustment is carried out. (RLIVA: Art. 16) (RLIVA: Art. 17)

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  • The amount obtained pursuant to subsection d) of this section shall be reduced to the amount obtained pursuant to subsection c) of this section. The result will be the amount to be credited (RLIVA: Art. 19), updated from the month in which it was accredited and until the month in question, and

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  • When the proportion of the value of the activities increases for which the value added tax has to be paid or the 0% rate is applied, with respect to the value of the total activities, the taxpayer may increase the accreditation, updated from the month in which it was accredited and until the month in question, according to the following procedure:
  • To the value added tax that has been transferred to the taxpayer or paid in the importation, corresponding to the investment, the maximum deduction percentage will be applied per exercise for the good in question is established in Title II of the Law on Income Tax (Ley del Impuesto sobre la Renta).

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  • The amount obtained pursuant to the preceding paragraph will be divided by twelve.

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  • To the amount determined in accordance with the preceding paragraph, shall apply the proportion value of the activities for which the value-added tax must be paid or the rate of 0% will be applied, represented in the total value of the activities that the taxpayer carried out in the month in which it carried out the accreditation. (RLIVA: Art. 16) (RLIVA: Art. 17)

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  • To the amount determined in accordance with subparagraph b) of this section, shall apply the proportion value of the activities for which the value-added tax must be paid or the rate of 0% is applied, represents in the total value of the activities will be applied that the taxpayer makes in the month for which the adjustment is carried out. (RLIVA: Art. 16) (RLIVA: Art. 17)

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  • The amount obtained pursuant to subsection c) of this section shall be reduced to the amount obtained pursuant to subsection d) of this section. The result will be the amount that can be credited (RLIVA: Art. 19), updated from the month in which the corresponding accreditation was made and until the month in question.

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    The procedure established in this article must be applied for the number of months included in the period in which, for the purposes of the Law on Income Tax (Ley del Impuesto sobre la Renta), the taxpayer would have deducted the investment in question, having applied the established maximum percentages in Title II of said Law. The number of months will start counting from the one in which the accreditation in question was made. The period corresponding to each investment will end early when it is transferred or ceases to be useful for obtaining income under the terms of the Law on Income Tax (Ley del Impuesto sobre la Renta).

    The update referred to in this article must be calculated by applying the update factor that will be obtained by dividing the National Consumer Price Index (Índice Nacional de Precios al Consumidor) of the most recent month of the period, by the aforementioned index corresponding to the oldest month of said period.