Value Added Tax (VAT) refund will return liquidity to companies

» Value Added Tax (VAT) refund will return liquidity to companies

Reduction in time required for audits to reclaim Value Added Tax (VAT) by the companies will take between 90 and 180 days maximum, instead of the current year waiting period. This will allow companies to have liquidity to invest and make payments from their payroll or suppliers, experts opined.

The latest figures from the Tax Administration Service (SAT) show that in the first six months of VAT refunds fell 36.48 percent over the same period of 2013.

Tax Code of Federation determined that tax authority could take up a year to conduct an audit to repay credit balance, which affected several shops that don’t generate VAT on its sales, but those who pay to make purchases associated with its operations, such as pharmaceutical and food producers.

Outcome of complaints from various contributors for refund of VAT delay by SAT, tax authority changed its internal regulations for this process.

The Office of Taxpayer Advocate (Prodecon) urged SAT to make this change and give greater certainty, so now when an audit is initiated to verify origin of return, it must be concluded within 90 or 180 days maximum.

Devolution process

For devolution process taxpayers should continue asking for it through Internet and for January 1, 2015, must send its accounting policies, attach the electronic foil invoicing whom they paid, number account to which they paid and if it is a transfer the provenance number account, referred Velderrain.

According to SAT at the same duration of audit also notify taxpayer if resolution is not propitious.

Additionally if taxpayer have several applications for refund of same tax, SAT may make a single request for information and documentation for all applications and, where appropriate, practice a single audit.

Taxpayers should be aware of their obligations, have all information and proceed directly, in case times are not respected or they ask for information that doesn't correspond to their operations they should go to defenses.

Experts said that if refund amount is considerable it results difficult to deliver it without performing a previous audit.

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Source: http://www.cnnexpansion.com/economia/2014/10/10/las-devoluciones-por-saldo-a-favor-del-iva-se-aceleraran

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