Proof of VAT not Withheld for Residents

PROOF OF VAT NOT WITHHELD FOR RESIDENTS ABROAD WITHOUT PERMANENT ESTABLISHMENT IN THE COUNTRY IS REPEALED. According to the preliminary draft of the third amendment to the Miscellaneous Fiscal Resolution 2020, published on the Tax Administration Service (SAT) page on 30 June 2020, taxpayers were informed of the repeal of rule 4.1.11, which referred to evidence that taxpayers who acquired, used or enjoyed tangible property were disposed of by foreign residents without a permanent establishment in the country, and who did not retain value added tax (VAT) had the option of correcting their tax situation, including any updates, surcharges and, where appropriate, fines.

Derived from the above in Art. 5º; fraction IV, of the LIVA, tells us that the VAT that was transferred to the taxpayer, and which has actually been paid in the month in question, can be credited in the next provisional payment in which the retention is known.

However, with the repeal mentioned in the preliminary draft, it informs us that the taxpayer must retain the corresponding tax, in the event that for some reason it did not comply with this withholding tax, the right to be able to credit the tax would be lost, and therefore the inappropriateness of the credits will be made.

So if you had these operations you must make the retention in time and form in order to be able to make the credits in your monthly taxes, if you have doubts about how to perform this procedure, we invite you to come to Bandala | Díaz | García in order to advise you on the proper process that you must do likewise we invite you to know our social networks where you can stay informed with relevant news that can be of your help.