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ARTICLES

LEGAL RESOURSES

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$ 17.26

    • ARTICLE 3: CASES IN WHICH A RETENTION MAY BE MADE LESS THAN THE TOTAL VALUE-ADDED TAX (VAT) CAUSED

     

    For the purposes of article 1-A, last paragraph of the Law (LIVA: Art. 1A), the legal entities are obliged to carry out the withholding of the tax transferred to them, will do so in a smaller amount, in the following cases:

  • The withholding will be made by two thirds of the tax that is transferred to them and that has been effectively paid, when the tax is transferred by individuals for the following operations:

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  • Provision of independent personal services;

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  • Provision of commission services, and

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  • Granting of use or enjoyment of goods.

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  • The withholding will be made for 4% of the value of the consideration actually paid, when they receive the services of land transportation of goods that are considered as such in the terms of the laws of the matter.

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  • Individuals or legal entities that provide services transportation for the goods referred to in the preceding paragraph, must make available to the Service Tax Administration (Servicio de Administración Tributaria) the supporting documentation, in accordance with the tax provisions, of the additional amounts to the value of the consideration agreed by the aforementioned services, which are actually charged to those who receive them, for contributions other than value-added tax, per diem, expenses of all kinds, reimbursements, normal or default interest, conventional penalties and for any other concept, identifying said documentation with such expenses.